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Abbott Laboratories (ABT) vs Deere & Company (DE): Which Is the Better Buy in 2026?

As of 2026-06-19, ABT is fairly valued at $88, with a DCF intrinsic value of $93 and a margin of safety of 5%. DE is undervalued at $589, with an intrinsic value of $1030 and a margin of safety of 43%. Of the two, DE has the wider margin of safety.

ABT
Abbott Laboratories
$88.41
VS
DE
Deere & Company
$589.24

Rewards

ABT
  • ★Abbott Laboratories scores 86/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Insiders have bought $1.1M worth of stock in the past 3 months — significant skin in the game.
  • ★Altman Z-Score of 5.60 indicates very low bankruptcy risk — the company is firmly in the safe zone.
DE
  • ★Free cash flow has grown at a 52.5% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

ABT
    DE
    • ⚠FCF yield of 2.0% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
    • ⚠Trailing P/E of 33.3x is 87% above the historical average of 17.8x — the stock trades at a premium to its own history.
    • ⚠High leverage (3.08x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.

    Key Valuation Metrics

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    ABT
    DE
    Valuation
    $6.34B
    Free Cash Flow
    $3.23B
    4.12%
    FCF Yield
    2.03%
    24.76
    Trailing P/E
    33.33
    14.59
    Forward P/E
    25.78
    Quality & Moat
    5.53%
    ROIC
    10.65%
    12.33%
    ROE
    18.35%
    56.50%
    Gross Margin
    25.96%
    1.34
    PEG Ratio
    1.78
    Balance Sheet Safety
    0.51
    Net Debt / Equity
    3.08
    N/A
    Interest Coverage
    N/A
    2.29
    Net Debt / EBITDA
    4.60
    2.76%
    Dividend Yield
    1.11%
    ABT: 9Ties: 1DE: 2
    ABTDE

    Historical Fundamentals

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    ABT

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    DE

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    $1 Retained Earnings Test

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    ABT
    $1.89
    created per $1 retained over 3 years
    Value Creator
    Σ Retained
    $14.14B
    Δ Market Cap
    +$26.79B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
    DE
    $-0.13
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $17.54B
    Δ Market Cap
    $-2.23B
    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
    > $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

    Discounted Cash Flow (DCF) Analysis

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    ABT
    4.8% Margin of Safety
    Price is 4.8% below estimated fair value
    Current Price: $88.41
    Fair Value: $92.91
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    DE
    42.8% Margin of Safety
    Price is 42.8% below estimated fair value
    Current Price: $589.24
    Fair Value: $1029.59
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    ABT

    What growth rate is the market pricing in at $88?

    +10.3%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +12.5%

    The market implies +10.3% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +12.5%, reflecting heavy growth investment.

    DE

    What growth rate is the market pricing in at $589?

    +17.0%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +23.1%

    The market implies +17.0% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +23.1%, reflecting heavy growth investment.

    Economic Moat Score

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    ABT
    86/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. Margin Stability is the standout factor.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
    DE
    50/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with margin stability as the key competitive advantage. Improving revenue predictability would strengthen the moat.

    Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

    Forensic Accounting

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    ABT
    -2.48
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
    DE
    -2.52
    Unlikely Manipulator
    Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

    M-Score Trend

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

    Ownership Breakdown

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    ABT
    Insiders 0.5%Institutions 82.7%Retail & Other 16.8%
    No. of Institutional Holders3,953
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
    DE
    Insiders 0.2%Institutions 82.8%Retail & Other 17.0%
    No. of Institutional Holders3,298
    High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

    High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

    Insider Buying Activity

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    ABT
    2
    Buys (3M)
    4
    Buys (12M)
    Total value (12M): $4.23M
    STARKS DANIEL J
    Director
    $926,537
    @ $92.65 · 2026-04-27
    BOUDREAU PHILIP P
    Chief Financial Officer
    $201,300
    @ $91.50 · 2026-04-23
    STARKS DANIEL J
    Director
    $1.09M
    @ $108.73 · 2026-02-04
    FORD ROBERT B.
    Chief Executive Officer
    $2.01M
    @ $107.13 · 2026-01-23
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    DE
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    Open market purchases · includes direct & indirect ownership · excludes option exercises

    Open market purchases · includes direct & indirect ownership · excludes option exercises.

    Insider Selling Activity

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    ABT
    0
    Sells (3M)
    8
    Sells (12M)
    Total value (12M): $1.44M
    SALVADORI DANIEL GESUA SIVE
    Officer
    $102,288
    @ $115.58 · 2026-03-02
    MCCOY JOHN A. JR
    Officer
    $67,614
    @ $115.58 · 2026-03-02
    MORRONE LOUIS H
    Officer
    $132,224
    @ $115.58 · 2026-03-02
    SHROFF ERIC
    Officer
    $81,946
    @ $115.58 · 2026-03-02
    CUSHMAN ELIZABETH C
    General Counsel
    $30,398
    @ $115.58 · 2026-03-02
    MORELAND MARY K
    Officer
    $70,851
    @ $115.58 · 2026-03-02
    SHROFF ERIC
    Officer
    $203,043
    @ $128.02 · 2025-11-25
    BOUDREAU PHILIP P
    Chief Financial Officer
    $746,758
    @ $134.55 · 2025-08-08
    BLOUNT SALLY E
    Director
    $337,116
    @ $129.66 · 2025-04-30
    EARNHARDT LISA D
    President
    $12.23M
    @ $133.83 · 2025-03-07
    MCCOY JOHN A. JR
    Officer
    $77,652
    @ $138.17 · 2025-03-03
    SHROFF ERIC
    Officer
    $77,652
    @ $138.17 · 2025-03-03
    MORELAND MARY K
    Officer
    $109,292
    @ $138.17 · 2025-03-03
    MORRONE LOUIS H
    Officer
    $153,507
    @ $138.17 · 2025-03-03
    WAINER ANDREA F
    Officer
    $131,123
    @ $138.17 · 2025-03-03
    FORD ROBERT B.
    Chief Executive Officer
    $37.44M
    @ $131.17 · 2025-02-05
    SALVADORI DANIEL GESUA SIVE
    Officer
    $3.05M
    @ $128.50 · 2025-01-30
    ALLEN HUBERT L.
    Officer
    $24.34M
    @ $128.26 · 2025-01-30
    ALLEN HUBERT L.
    Officer
    $18.42M
    @ $117.04 · 2024-10-21
    FORD ROBERT B.
    Chief Executive Officer
    $16.49M
    @ $116.41 · 2024-09-12
    MCCOY JOHN A. JR
    Officer
    $3,100
    @ $114.81 · 2024-09-04
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    DE
    0
    Sells (3M)
    3
    Sells (12M)
    Total value (12M): $32.47M
    REED CORY J.
    Officer
    $6.12M
    @ $510.00 · 2026-01-14
    MAY JOHN C. II
    Chief Executive Officer
    $20.80M
    @ $501.49 · 2026-01-08
    MAY JOHN C. II
    Chief Executive Officer
    $5.55M
    @ $500.08 · 2025-11-25
    KALATHUR RAJESH
    Chief Technology Officer
    $12.30M
    @ $500.61 · 2025-02-18
    REED CORY J.
    Officer
    $5.05M
    @ $377.63 · 2024-06-24
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

    🎭 Mr. Market's Mood

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    ABT
    FearGreed
    😐Neutral(41/100)

    "Market is pricing this stock without strong emotion in either direction"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
    DE
    FearGreed
    😏Greed(61/100)

    "Market is optimistic — be cautious and ensure you have a margin of safety"

    Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

    ⚖️ Buffett Signal

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    ABT
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Neutral (41)
    DE
    ⚪Awaiting DCF Data

    The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

    DCF Margin of Safety: N/AMr. Market's Mood: Greed (61)
    View ABT Full AnalysisView DE Full Analysis

    Frequently Asked Questions: ABT vs DE

    Is Abbott Laboratories or Deere & Company more undervalued in 2026?▼

    Based on our discounted cash flow model, DE trades at a 42.8% margin of safety (intrinsic value $1030 vs. price $589), compared to ABT's 4.8% margin of safety (intrinsic $93 vs. $88).

    Which stock has a wider economic moat, Abbott Laboratories or Deere & Company?▼

    ABT scores 86/100 (Wide moat), while DE scores 50/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is Deere & Company in financial distress?▼

    DE's Altman Z-Score of 2.9 places it in the Grey zone, signaling elevated bankruptcy risk. ABT scores 5.6 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

    Which company has better free cash flow, Abbott Laboratories or Deere & Company?▼

    Abbott Laboratories (ABT) generates a 4.1% free cash flow yield, compared to Deere & Company's 2.0%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

    Which stock has higher return on invested capital, Abbott Laboratories or Deere & Company?▼

    DE earns 10.7% ROIC versus ABT's 5.5%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

    Which dividend is safer, Abbott Laboratories's or Deere & Company's?▼

    DE's dividend earns a safety score of 94/100 (Very Safe), compared to ABT's 84/100 (Very Safe). DE has raised its dividend for 3 consecutive years.

    ABT vs DE: Which Is the Better Buy in 2026? | SafetyMargin.io