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Compare Stocks › DE vs SBUX

Deere & Company (DE) vs Starbucks Corporation (SBUX): Which Is the Better Buy in 2026?

As of 2026-06-19, DE is undervalued at $589, with a DCF intrinsic value of $1030 and a margin of safety of 43%. SBUX is overvalued at $101, with an intrinsic value of $82 and a margin of safety of -23%. Of the two, DE has the wider margin of safety.

DE
Deere & Company
$589.24
VS
SBUX
Starbucks Corporation
$100.65

Rewards

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

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.
SBUX
  • ⚠Gross margin of 21.9% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Trailing P/E of 76.8x is 119% above the historical average of 35.1x — the stock trades at a premium to its own history.
  • ⚠Net debt/EBITDA of 4.2x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.

Key Valuation Metrics

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DE
SBUX
Valuation
$3.23B
Free Cash Flow
$-1.30B
2.03%
FCF Yield
-1.14%
33.33
Trailing P/E
76.83
25.78
Forward P/E
33.43
Quality & Moat
10.65%
ROIC
10.48%
18.35%
ROE
N/A
25.96%
Gross Margin
21.90%
1.78
PEG Ratio
1.35
Balance Sheet Safety
3.08
Net Debt / Equity
N/A
N/A
Interest Coverage
N/A
4.60
Net Debt / EBITDA
4.21
1.11%
Dividend Yield
2.44%
DE: 5Ties: 2SBUX: 3
DESBUX

Historical Fundamentals

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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.

SBUX

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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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
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

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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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
SBUX
23.0% Overvalued
Price is 23.0% above estimated fair value
Current Price: $100.65
Fair Value: $81.80
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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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.

SBUX

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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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.
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.

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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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.
SBUX
-2.77
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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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.
SBUX
Insiders 0.1%Institutions 86.8%Retail & Other 13.1%
No. of Institutional Holders2,950
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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DE
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
SBUX
0
Buys (3M)
1
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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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
SBUX
6
Sells (3M)
9
Sells (12M)
Total value (12M): $1.32M
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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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.
SBUX
FearGreed
😐Neutral(59/100)

"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.

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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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)
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 (59)
View DE Full AnalysisView SBUX Full Analysis

Frequently Asked Questions: DE vs SBUX

Is Deere & Company or Starbucks Corporation 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 SBUX's -23.0% margin of safety (intrinsic $82 vs. $101).

Which stock has a wider economic moat, Deere & Company or Starbucks Corporation?▼

SBUX scores 71/100 (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 Starbucks Corporation in financial distress?▼

SBUX's Altman Z-Score of 2.5 places it in the Grey 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 company has better free cash flow, Deere & Company or Starbucks Corporation?▼

Deere & Company (DE) generates a 2.0% free cash flow yield, compared to Starbucks Corporation's -1.1%. 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, Deere & Company or Starbucks Corporation?▼

DE earns 10.7% ROIC versus SBUX's 10.5%. 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, Deere & Company's or Starbucks Corporation's?▼

DE's dividend earns a safety score of 94/100 (Very Safe), compared to SBUX's 24/100 (Unsafe). DE has raised its dividend for 3 consecutive years.