Starbucks (NASDAQ:SBUX – Get Free Report) and Bragg Gaming Group (NASDAQ:BRAG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Profitability
This table compares Starbucks and Bragg Gaming Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Starbucks | 5.17% | -34.10% | 9.03% |
| Bragg Gaming Group | -7.48% | -12.70% | -8.22% |
Earnings and Valuation
This table compares Starbucks and Bragg Gaming Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Starbucks | $37.18 billion | 2.90 | $1.86 billion | $1.74 | 54.27 |
| Bragg Gaming Group | $119.98 million | 0.29 | -$9.18 million | ($0.36) | -3.22 |
Starbucks has higher revenue and earnings than Bragg Gaming Group. Bragg Gaming Group is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
72.3% of Starbucks shares are held by institutional investors. Comparatively, 4.0% of Bragg Gaming Group shares are held by institutional investors. 0.0% of Starbucks shares are held by insiders. Comparatively, 26.4% of Bragg Gaming Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Starbucks has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Bragg Gaming Group has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Starbucks and Bragg Gaming Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Starbucks | 4 | 11 | 18 | 1 | 2.47 |
| Bragg Gaming Group | 1 | 3 | 1 | 0 | 2.00 |
Starbucks presently has a consensus price target of $110.48, indicating a potential upside of 17.00%. Bragg Gaming Group has a consensus price target of $5.00, indicating a potential upside of 331.03%. Given Bragg Gaming Group’s higher possible upside, analysts clearly believe Bragg Gaming Group is more favorable than Starbucks.
Summary
Starbucks beats Bragg Gaming Group on 12 of the 15 factors compared between the two stocks.
About Starbucks
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
About Bragg Gaming Group
Bragg Gaming Group Inc. provides business to business online gaming technology platform and casino content aggregator worldwide. The company offers a range of games, including slot, table, card, video bingo, scratch card, and virtual sports, as well as live dealer games. It also provides player account management platform, a multi-channel and cross-product that enables operators to manage the entire product suite using one shared account and one wallet for casino, lottery, sportsbook, and other operations; and Fuze, a single integrated platform that delivers third party gaming content. In addition, the company offers turnkey and managed services; and holds various content distribution rights through partnerships with selected third-party studios. It offers its products under the Wild Streak, Spin, Atomic Slot Lab, Indigo Magic, Oryx Gaming, iCasino, and sportsbook brands. The company was formerly known as Rockies Financial Corporation and as changed its name to Bragg Gaming Group Inc. in 2018. Bragg Gaming Group Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
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