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Colgate-Palmolive Company (CL) vs ConocoPhillips (COP): Which Is the Better Buy in 2026?

As of 2026-08-03, CL is undervalued at $91, with a DCF intrinsic value of $34301600323 and a margin of safety of 100%. COP is fairly valued at $120, with an intrinsic value of $113 and a margin of safety of -7%. Of the two, CL has the wider margin of safety.

CL
Colgate-Palmolive Company
$91.30
VS
COP
ConocoPhillips
$120.48

Rewards

CL
  • ★Colgate-Palmolive Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 60.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Colgate-Palmolive Company scores 98/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
COP

    Risks

    CL
    • ⚠PEG ratio of 2.32 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
    • ⚠High leverage (11.31x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
    • ⚠10 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
    COP
    • ⚠ROIC has declined by 17.9 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
    • ⚠Trailing P/E of 20.4x is 69% above the historical average of 12.1x — the stock trades at a premium to its own history.

    Key Valuation Metrics

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    CL
    COP
    Valuation
    $3.46B
    Free Cash Flow
    $7.24B
    N/A
    FCF Yield
    4.93%
    35.94
    Trailing P/E
    20.42
    22.43
    Forward P/E
    13.38
    Quality & Moat
    41.39%
    ROIC
    11.77%
    267.37%
    ROE
    11.28%
    60.43%
    Gross Margin
    45.59%
    2.32
    PEG Ratio
    1.02
    Balance Sheet Safety
    11.31
    Net Debt / Equity
    0.26
    N/A
    Interest Coverage
    N/A
    1.29
    Net Debt / EBITDA
    0.73
    2.32%
    Dividend Yield
    2.79%
    CL: 3Ties: 1COP: 7
    CLCOP

    Historical Fundamentals

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    CL

    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.

    COP

    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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    CL
    $0.00
    created per $1 retained over 3 years
    Value Destroyer
    Σ Retained
    $1.96B
    Δ Market Cap
    +$0.23
    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
    COP
    $-1.99
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $14.97B
    Δ Market Cap
    $-29.73B
    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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    CL
    100.0% Margin of Safety
    Price is 100.0% below estimated fair value
    Current Price: $91.30
    Fair Value: $34301600322.55
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    COP
    39.4% Overvalued
    Price is 39.4% above estimated fair value
    Current Price: $120.48
    Fair Value: $86.45
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued

    Reverse DCF — Market-Implied Growth

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    CL

    What growth rate is the market pricing in at $91?

    -21.3%
    Market-Implied Owner Earnings Growth
    Standard FCF implies -30.0%

    The market implies -21.3% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding -30.0%, reflecting heavy growth investment expected to generate future returns.

    COP

    What growth rate is the market pricing in at $120?

    +8.1%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +9.4%

    The market implies +8.1% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +9.4%, reflecting heavy growth investment.

    Economic Moat Score

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    CL
    98/100
    Wide Moat
    70+ Wide · 40-69 Narrow · <40 None

    Wide moat with strength across all dimensions. ROIC Consistency 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.
    COP
    38/100
    No Moat
    70+ Wide · 40-69 Narrow · <40 None

    No durable moat detected, though roic consistency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

    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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    CL
    -3.00
    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.
    COP
    -2.89
    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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    CL
    Insiders 0.1%Institutions 88.0%Retail & Other 11.8%
    No. of Institutional Holders2,640
    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.
    COP
    Insiders 0.1%Institutions 87.3%Retail & Other 12.6%
    No. of Institutional Holders3,062
    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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    CL
    0
    Buys (3M)
    0
    Buys (12M)
    No open market insider purchases found.
    Open market purchases · includes direct & indirect ownership · excludes option exercises
    COP
    0
    Buys (3M)
    1
    Buys (12M)
    Total value (12M): $500,000
    MCRAVEN WILLIAM H.
    Director
    $500,000
    @ $86.69 · 2025-11-10
    JOHNSON KIRK L
    Officer
    $499,472
    @ $94.24 · 2025-06-16
    MURTI ARJUN N
    Director
    $239,675
    @ $95.87 · 2024-12-20
    WALKER R A
    Director
    $1.02M
    @ $97.80 · 2024-12-17
    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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    CL
    2
    Sells (3M)
    10
    Sells (12M)
    Total value (12M): $26.11M
    MALCOLM GREGORY
    Officer
    $203,412
    @ $88.44 · 2026-05-15
    MASSEY SALLY
    Officer
    $751,633
    @ $87.41 · 2026-05-07
    TSOURAPAS PANAGIOTIS
    Officer
    $4.78M
    @ $95.57 · 2026-02-12
    HAZLIN JOHN
    Officer
    $1.98M
    @ $94.25 · 2026-02-10
    MALCOLM GREGORY
    Officer
    $1.21M
    @ $94.91 · 2026-02-06
    MASSEY SALLY
    Officer
    $1.51M
    @ $95.03 · 2026-02-05
    SUTULA STANLEY J III
    Chief Financial Officer
    $9.22M
    @ $94.27 · 2026-02-04
    DANIELS JENNIFER M.
    Officer
    $2.08M
    @ $94.34 · 2026-02-04
    WALLACE NOEL R
    Chief Executive Officer
    $4.28M
    @ $93.91 · 2026-02-04
    MASSEY SALLY
    Officer
    $100,061
    @ $80.89 · 2025-11-21
    MASSEY SALLY
    Officer
    $200,183
    @ $88.97 · 2025-05-15
    MASSEY SALLY
    Officer
    $736,152
    @ $92.02 · 2025-02-25
    MALCOLM GREGORY
    Officer
    $101,121
    @ $95.94 · 2024-11-26
    WALLACE NOEL R
    Chief Executive Officer
    $3.17M
    @ $95.00 · 2024-11-22
    SUTULA STANLEY J III
    Chief Financial Officer
    $4.27M
    @ $94.11 · 2024-11-05
    SUTULA STANLEY J III
    Chief Financial Officer
    $4.68M
    @ $93.53 · 2024-11-01
    HUND-MEJEAN MARTINA
    Director
    $240,228
    @ $103.86 · 2024-08-23
    TSOURAPAS PANAGIOTIS
    Officer
    $1.52M
    @ $102.94 · 2024-08-08
    DANIELS JENNIFER M.
    Officer
    $2.26M
    @ $102.76 · 2024-08-08
    MALCOLM GREGORY
    Officer
    $1.09M
    @ $103.10 · 2024-08-06
    KOOYMAN JOHN W
    Officer
    $2.55M
    @ $102.88 · 2024-08-06
    MASSEY SALLY
    Officer
    $1.64M
    @ $103.28 · 2024-08-06
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    COP
    1
    Sells (3M)
    12
    Sells (12M)
    Total value (12M): $127.52M
    MULLIGAN SHARMILA
    Director
    $234,906
    @ $119.00 · 2026-06-10
    ROSE KELLY BRUNETTI
    General Counsel
    $1.00M
    @ $130.03 · 2026-03-24
    OLDS NICHOLAS G
    Officer
    $888,651
    @ $127.06 · 2026-03-23
    LANCE RYAN MICHAEL
    Chief Executive Officer
    $64.49M
    @ $127.26 · 2026-03-20
    LUNDQUIST ANDREW D
    Officer
    $4.13M
    @ $119.68 · 2026-03-13
    HRAP HEATHER GRACE
    Officer
    $317,631
    @ $119.68 · 2026-03-13
    OLDS NICHOLAS G
    Officer
    $1.73M
    @ $119.36 · 2026-03-12
    HAYNES-WELSH KONTESSA S.
    Officer
    $1.24M
    @ $120.07 · 2026-03-12
    OLDS NICHOLAS G
    Officer
    $1.41M
    @ $116.37 · 2026-03-11
    ROSE KELLY BRUNETTI
    General Counsel
    $1.00M
    @ $118.04 · 2026-03-09
    LEACH TIMOTHY ALLEN
    Director
    $4.75M
    @ $118.79 · 2026-03-06
    LANCE RYAN MICHAEL
    Chief Executive Officer
    $46.32M
    @ $92.50 · 2025-12-19
    LEACH TIMOTHY ALLEN
    Director
    $6.00M
    @ $108.11 · 2024-08-13
    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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    CL
    FearGreed
    😐Neutral(57/100)

    "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.
    COP
    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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    CL
    ⚪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 (57)
    COP
    ⚪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 CL Full AnalysisView COP Full Analysis

    Frequently Asked Questions: CL vs COP

    Is Colgate-Palmolive Company or ConocoPhillips more undervalued in 2026?▼

    Based on our discounted cash flow model, CL trades at a 100.0% margin of safety (intrinsic value $34301600323 vs. price $91), compared to COP's -6.6% margin of safety (intrinsic $113 vs. $120).

    Which stock has a wider economic moat, Colgate-Palmolive Company or ConocoPhillips?▼

    CL scores 98/100 (Wide moat), while COP scores 38/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is ConocoPhillips in financial distress?▼

    COP's Altman Z-Score of 2.8 places it in the Grey zone, signaling elevated bankruptcy risk. CL scores 4.3 (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 stock has higher return on invested capital, Colgate-Palmolive Company or ConocoPhillips?▼

    CL earns 41.4% ROIC versus COP's 11.8%. 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, Colgate-Palmolive Company's or ConocoPhillips's?▼

    COP's dividend earns a safety score of 78/100 (Safe), compared to CL's 64/100 (Safe). COP has raised its dividend for 1 consecutive years.