Deere & Company (DE) vs JP Morgan Chase & Co. (JPM): Which Is the Better Buy in 2026?
As of 2026-08-03, DE is undervalued at $593, with a DCF intrinsic value of $983 and a margin of safety of 40%. JPM is undervalued at $352, with an intrinsic value of $1411518993158 and a margin of safety of 100%. Of the two, JPM has the wider margin of safety.
Rewards
- ★Free cash flow has grown at a 52.5% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★JP Morgan Chase & Co. scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Each dollar of retained earnings has created $1.79 of earning power — management is creating shareholder value.
Risks
- ⚠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 33.6x is 88% 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.
- ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Altman Z-Score of 0.17 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠5 insider sales totaling $8.1M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →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.
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
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $593?
The market implies +17.0% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +23.1%, reflecting heavy growth investment.
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →Narrow moat with margin stability as the key competitive advantage. Improving revenue predictability would strengthen the moat.
Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
Forensic Accounting
Learn more →M-Score Trend
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.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: DE vs JPM
Is Deere & Company or JP Morgan Chase & Co. more undervalued in 2026?▼
Based on our discounted cash flow model, JPM trades at a 100.0% margin of safety (intrinsic value $1411518993158 vs. price $352), compared to DE's 39.7% margin of safety (intrinsic $983 vs. $593).
Which stock has a wider economic moat, Deere & Company or JP Morgan Chase & Co.?▼
JPM scores 90/100 (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 JP Morgan Chase & Co. in financial distress?▼
JPM's Altman Z-Score of 0.2 places it in the Distress zone, signaling elevated bankruptcy risk. DE scores 2.9 (Grey 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, Deere & Company or JP Morgan Chase & Co.?▼
DE earns 10.7% ROIC versus JPM's 5.6%. 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, Deere & Company's or JP Morgan Chase & Co.'s?▼
DE's dividend earns a safety score of 94/100 (Very Safe), compared to JPM's 76/100 (Safe). DE has raised its dividend for 3 consecutive years.