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

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

SBUX
Starbucks Corporation
$105.90
VS
T
AT&T Inc.
$26.12

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 2.34% 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 $14.87 of earning power — management is an exceptional capital allocator.
  • ★FCF yield of 10.7% is historically attractive — the business generates significant cash relative to its price.

Risks

SBUX
  • ⚠Gross margin of 21.9% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠Trailing P/E of 80.8x is 130% above the historical average of 35.1x — the stock trades at a premium to its own history.
  • ⚠PEG ratio of 2.48 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
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
$-1.30B
Free Cash Flow
$19.44B
-1.08%
FCF Yield
10.71%
80.84
Trailing P/E
8.59
35.11
Forward P/E
10.22
Quality & Moat
10.48%
ROIC
7.90%
N/A
ROE
17.15%
21.90%
Gross Margin
59.41%
2.48
PEG Ratio
1.82
Balance Sheet Safety
N/A
Debt / Equity
1.25
N/A
Interest Coverage
N/A
4.21
Net Debt / EBITDA
3.33
2.34%
Dividend Yield
4.25%
SBUX: 1Ties: 1T: 8
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
28.6% Overvalued
Price is 28.6% above estimated fair value
Current Price: $105.90
Fair Value: $82.37
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
T
54.8% Margin of Safety
Price is 54.8% below estimated fair value
Current Price: $26.12
Fair Value: $57.83
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 $26?

+3.8%
Market-Implied Owner Earnings Growth
Standard FCF implies +5.4%

The market implies +3.8% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +5.4%, 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 84.4%Retail & Other 15.5%
No. of Institutional Holders2,888
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 68.5%Retail & Other 31.5%
No. of Institutional Holders3,617
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
6
Sells (3M)
6
Sells (12M)
Total value (12M): $877,464
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
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
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
😏Greed(71/100)

"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.
T
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.

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: Greed (71)
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 (55)
View SBUX Full AnalysisView T Full Analysis
SBUX vs T: Which Is the Better Buy? | SafetyMargin.io