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Colgate-Palmolive Company (CL) vs Deere & Company (DE): Which Is the Better Buy in 2026?

As of 2026-09-17, CL is overvalued at $88, with a DCF intrinsic value of $45 and a margin of safety of -93%. DE is undervalued at $686, with an intrinsic value of $895 and a margin of safety of 23%. Of the two, DE has the wider margin of safety.

CL
Colgate-Palmolive Company
$87.73
VS
DE
Deere & Company
$685.63

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.
DE
  • ★Free cash flow has grown at a 52.5% CAGR over the past 4 years, demonstrating strong earnings power growth.

Risks

CL
  • ⚠High leverage (11.31x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Insiders have sold $30.1M worth of stock in the past 3 months — significant insider liquidation.
DE
  • ⚠FCF yield of 2.4% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Trailing P/E of 38.1x is 113% above the historical average of 17.8x — the stock trades at a premium to its own history.
  • ⚠High leverage (2.06x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.

Key Valuation Metrics

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CL
DE
Valuation
$3.46B
Free Cash Flow
$4.52B
4.95%
FCF Yield
2.44%
34.54
Trailing P/E
38.07
21.36
Forward P/E
30.19
Quality & Moat
41.39%
ROIC
5.47%
267.37%
ROE
18.24%
60.43%
Gross Margin
25.18%
1.59
PEG Ratio
1.55
Balance Sheet Safety
11.31
Net Debt / Equity
2.06
N/A
Interest Coverage
N/A
1.29
Net Debt / EBITDA
6.70
2.44%
Dividend Yield
0.97%
CL: 8Ties: 2DE: 2
CLDE

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.

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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CL
$-1.07
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.96B
Δ Market Cap
$-2.10B
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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CL
92.9% Overvalued
Price is 92.9% above estimated fair value
Current Price: $87.73
Fair Value: $45.47
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
DE
23.4% Margin of Safety
Price is 23.4% below estimated fair value
Current Price: $685.63
Fair Value: $895.30
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 $88?

+15.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +9.1%

The market implies +15.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +9.1%, reflecting heavy growth investment.

DE

What growth rate is the market pricing in at $686?

+19.7%
Market-Implied Owner Earnings Growth
Standard FCF implies +21.2%

The market implies +19.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +21.2%, 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.
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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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.
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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CL
Insiders 0.1%Institutions 86.4%Retail & Other 13.5%
No. of Institutional Holders2,693
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 84.5%Retail & Other 15.4%
No. of Institutional Holders3,372
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
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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CL
2
Sells (3M)
12
Sells (12M)
Total value (12M): $56.19M
CAHILL JOHN T
Director
$389,358
@ $93.37 · 2026-08-06
WALLACE NOEL R
Chief Executive Officer
$29.70M
@ $92.22 · 2026-08-05
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
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
DE
3
Sells (3M)
6
Sells (12M)
Total value (12M): $55.91M
CAMPBELL RYAN DAVID
Officer
$3.16M
@ $651.19 · 2026-08-31
CAMPBELL RYAN DAVID
Officer
$5.12M
@ $653.77 · 2026-08-24
CAMPBELL RYAN DAVID
Officer
$15.15M
@ $651.18 · 2026-08-21
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
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(51/100)

"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(69/100)

"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 (51)
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 (69)
View CL Full AnalysisView DE Full Analysis

Frequently Asked Questions: CL vs DE

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

Based on our discounted cash flow model, DE trades at a 23.4% margin of safety (intrinsic value $895 vs. price $686), compared to CL's -92.9% margin of safety (intrinsic $45 vs. $88).

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

CL scores 98/100 (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. CL scores 6.7 (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, Colgate-Palmolive Company or Deere & Company?▼

Colgate-Palmolive Company (CL) generates a 4.9% free cash flow yield, compared to Deere & Company's 2.4%. 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, Colgate-Palmolive Company or Deere & Company?▼

CL earns 41.4% ROIC versus DE'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, Colgate-Palmolive Company's or Deere & Company's?▼

DE's dividend earns a safety score of 94/100 (Very Safe), compared to CL's 64/100 (Safe). DE has raised its dividend for 3 consecutive years.