Compare Stocks › CL vs SBUX

Colgate-Palmolive Company (CL) vs Starbucks Corporation (SBUX): 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%. SBUX is overvalued at $105, with an intrinsic value of $59 and a margin of safety of -79%. Of the two, CL has the wider margin of safety.

Colgate-Palmolive Company

$91.30

SBUX

Starbucks Corporation

$105.25

Rewards

★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.

SBUX

★Starbucks Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
★Starbucks Corporation scores 71/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

⚠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.

SBUX

⚠Gross margin of 22.3% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠FCF yield of 2.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠Trailing P/E of 60.8x is 73% above the historical average of 35.1x — the stock trades at a premium to its own history.

Key Valuation Metrics

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SBUX

Valuation

$3.46B

Free Cash Flow

$3.07B

N/A

FCF Yield

2.55%

35.94

Trailing P/E

60.84

22.43

Forward P/E

33.93

Quality & Moat

41.39%

ROIC

17.43%

267.37%

ROE

N/A

60.43%

Gross Margin

22.34%

2.32

PEG Ratio

1.28

Balance Sheet Safety

11.31

Net Debt / Equity

N/A

Interest Coverage

N/A

1.29

Net Debt / EBITDA

3.34

2.32%

Dividend Yield

2.36%

CL: 6Ties: 2SBUX: 1

CLSBUX

Historical Fundamentals

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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.

SBUX

$1 Retained Earnings Test

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$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

SBUX

$-9.28

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$1.95B

Δ Market Cap

$-18.13B

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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100.0% Margin of Safety

Price is 100.0% below estimated fair value

Current Price: $91.30

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $34301600322.55

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

SBUX

79.0% Overvalued

Price is 79.0% above estimated fair value

Current Price: $105.25

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $58.79

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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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.

SBUX

What growth rate is the market pricing in at $105?

+25.8%

Market-Implied Owner Earnings Growth

Standard FCF implies +18.9%

The market implies +25.8% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +18.9%, reflecting heavy growth investment.

Economic Moat Score

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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.

SBUX

71/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Margin Stability is the area most vulnerable to competitive pressure.

Forensic Accounting

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-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.

SBUX

-2.77

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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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.

SBUX

Insiders 0.1%Institutions 86.7%Retail & Other 13.1%

No. of Institutional Holders2,940

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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Buys (3M)

Buys (12M)

No open market insider purchases found.

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

SBUX

Buys (3M)

Buys (12M)

Total value (12M): $994,500

KNUDSTORP JORGEN VIG

Director

$994,500

@ $85.00 · 2025-11-10

KNUDSTORP JORGEN VIG

Director

$34,770

@ $91.50 · 2024-09-06

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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Sells (3M)

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

SBUX

Sells (3M)

Sells (12M)

Total value (12M): $1.56M

BREWER BRADY

Officer

$231,816

@ $104.00 · 2026-07-06

BREWER BRADY

Officer

$58,800

@ $100.00 · 2026-06-11

BREWER BRADY

Officer

$154,796

@ $94.33 · 2026-06-05

BREWER BRADY

Officer

$233,621

@ $104.81 · 2026-05-05

KELLY SARA

Officer

$210,000

@ $105.00 · 2026-04-29

BREWER BRADY

Officer

$58,800

@ $100.00 · 2026-04-17

BREWER BRADY

Officer

$147,690

@ $90.00 · 2026-04-06

BREWER BRADY

Officer

$58,800

@ $100.00 · 2026-03-09

KELLY SARA

Officer

$242,800

@ $97.12 · 2026-03-05

BREWER BRADY

Officer

$159,374

@ $97.12 · 2026-03-05

KELLY SARA

Officer

$1.94M

@ $101.37 · 2024-11-29

RUGGERI RACHEL

Chief Financial Officer

$148,414

@ $99.54 · 2024-11-21

RUGGERI RACHEL

Chief Financial Officer

$143,850

@ $99.07 · 2024-11-15

CONWAY MICHAEL AARON

Officer

$305,598

@ $94.03 · 2024-08-15

RUGGERI RACHEL

Chief Executive Officer

$299,916

@ $91.16 · 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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😐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.

SBUX

😐Neutral(60/100)

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

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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⚪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)

SBUX

⚪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 (60)

View CL Full Analysis View SBUX Full Analysis

Frequently Asked Questions: CL vs SBUX

Is Colgate-Palmolive Company or Starbucks Corporation 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 SBUX's -79.0% margin of safety (intrinsic $59 vs. $105).

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

CL scores 98/100 (Wide moat), while SBUX scores 71/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Starbucks Corporation in financial distress?▼

SBUX's Altman Z-Score of 2.5 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 Starbucks Corporation?▼

CL earns 41.4% ROIC versus SBUX's 17.4%. 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 Starbucks Corporation's?▼

CL's dividend earns a safety score of 64/100 (Safe), compared to SBUX's 24/100 (Unsafe). CL has raised its dividend for 3 consecutive years.