Critical Contrast: Starbucks Corporation (SBUX) versus The Competition
Starbucks Corporation (NASDAQ: SBUX) is one of 44 publicly-traded companies in the “Restaurants & Bars” industry, but how does it weigh in compared to its competitors? We will compare Starbucks Corporation to similar companies based on the strength of its earnings, profitability, institutional ownership, dividends, risk, analyst recommendations and valuation.
This table compares Starbucks Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Starbucks Corporation Competitors||1.77%||12.50%||1.76%|
Earnings & Valuation
This table compares Starbucks Corporation and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Starbucks Corporation||$22.40 billion||$5.14 billion||28.01|
|Starbucks Corporation Competitors||$2.04 billion||$349.24 million||-4.55|
Starbucks Corporation has higher revenue and earnings than its competitors. Starbucks Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
Starbucks Corporation has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Starbucks Corporation’s competitors have a beta of 0.67, indicating that their average stock price is 33% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Starbucks Corporation and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Starbucks Corporation Competitors||272||1548||2139||73||2.50|
Starbucks Corporation presently has a consensus target price of $64.14, indicating a potential upside of 16.26%. As a group, “Restaurants & Bars” companies have a potential upside of 10.93%. Given Starbucks Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Starbucks Corporation is more favorable than its competitors.
Starbucks Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Starbucks Corporation pays out 50.8% of its earnings in the form of a dividend. As a group, “Restaurants & Bars” companies pay a dividend yield of 3.0% and pay out 61.0% of their earnings in the form of a dividend.
Insider and Institutional Ownership
70.8% of Starbucks Corporation shares are held by institutional investors. Comparatively, 69.0% of shares of all “Restaurants & Bars” companies are held by institutional investors. 3.4% of Starbucks Corporation shares are held by insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Starbucks Corporation beats its competitors on 13 of the 15 factors compared.
About Starbucks Corporation
Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company’s Americas, CAP, and EMEA segments include both company-operated and licensed stores. Its Channel Development segment includes roasted whole bean and ground coffees, Tazo teas, Starbucks- and Tazo-branded single-serve products, a range of ready-to-drink beverages, such as Frappuccino, Starbucks Doubleshot and Starbucks Refreshers beverages and other branded products sold across the world through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and the United States foodservice accounts.
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