SafetyMargin.ioSafetyMargin.io
BlogWatchlistCompare
Compare Stocks › SBUX vs T

Starbucks Corporation (SBUX) vs AT&T Inc. (T)

SBUX
Starbucks Corporation
$95.83
VS
T
AT&T Inc.
$27.74

Rewards

SBUX
  • ★Starbucks Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Starbucks Corporation scores 71/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
  • ★Dividend yield of 2.59% with a consistent or growing payout over the past 4 years.
T
  • ★Free cash flow has grown at a 16.2% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $1.91 of market value — management is creating shareholder value.
  • ★FCF yield of 9.9% is historically attractive — the business generates significant cash relative to its price.

Risks

SBUX
  • ⚠Gross margin of 22.2% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Trailing P/E of 79.9x is 127% above the historical average of 35.2x — the stock trades at a premium to its own history.
  • ⚠Net debt/EBITDA of 4.1x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
T
  • ⚠Altman Z-Score of 0.89 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

Learn more →
SBUX
T
Valuation
$-1.44B
Free Cash Flow
$19.44B
-1.32%
FCF Yield
9.89%
79.86
Trailing P/E
9.13
32.45
Forward P/E
10.89
Quality & Moat
10.82%
ROIC
6.35%
N/A
ROE
17.04%
22.17%
Gross Margin
59.55%
N/A
PEG Ratio
N/A
Balance Sheet Safety
N/A
Debt / Equity
1.24
N/A
Interest Coverage
N/A
4.13
Net Debt / EBITDA
3.19
2.59%
Dividend Yield
4.00%
SBUX: 1Ties: 1T: 7
SBUXT

Historical Fundamentals

Learn more →
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.

T

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

Learn more →
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
T
$1.91
created per $1 retained over 3 years
Value Creator
Σ Retained
$22.78B
Δ Market Cap
+$43.59B
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

Learn more →
SBUX
1.6% Overvalued
Price is 1.6% above estimated fair value
Current Price: $95.83
Fair Value: $94.35
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
T
53.1% Margin of Safety
Price is 53.1% below estimated fair value
Current Price: $27.74
Fair Value: $59.14
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

Learn more →
SBUX

Requires positive FCF to compute implied growth rate.

T

What growth rate is the market pricing in at $28?

+4.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +5.8%

The market implies +4.2% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +5.8%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

Learn more →
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.
T
57/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving roic consistency 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

Learn more →
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.
T
-2.78
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

Learn more →
SBUX
Insiders 0.1%Institutions 84.8%Retail & Other 15.1%
No. of Institutional Holders2,899
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.
T
Insiders 0.1%Institutions 67.8%Retail & Other 32.1%
No. of Institutional Holders3,554
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

Learn more →
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
T
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

Learn more →
SBUX
3
Sells (3M)
3
Sells (12M)
Total value (12M): $460,974
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
CONWAY MICHAEL AARON
Officer
$260,000
@ $80.00 · 2024-06-14
RUGGERI RACHEL
Chief Financial Officer
$300,000
@ $80.00 · 2024-05-22
KELLY SARA
Officer
$19,375
@ $77.50 · 2024-05-21
KELLY SARA
Officer
$22,000
@ $88.00 · 2024-04-22
CONWAY MICHAEL AARON
Officer
$277,518
@ $85.39 · 2024-04-15
KELLY SARA
Officer
$23,158
@ $92.63 · 2024-03-21
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
T
0
Sells (3M)
1
Sells (12M)
Total value (12M): $41,348
SABRINA SANDERS S
Officer
$41,348
@ $27.57 · 2025-05-28
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

Learn more →
SBUX
FearGreed
😐Neutral(55/100)

"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.
T
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

Learn more →
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 (55)
T
⚪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 SBUX Full AnalysisView T Full Analysis