Starbucks Corporation (SBUX) vs. The Competition Critical Contrast
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 rivals? We will compare Starbucks Corporation to similar companies based off the strength of its profitability, earnings, valuation, dividends, institutional ownership, risk and analyst recommendations.
Volatility & Risk
Starbucks Corporation has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Starbucks Corporation’s rivals have a beta of 0.66, meaning that their average share price is 34% less volatile than the S&P 500.
Institutional and Insider Ownership
71.0% of Starbucks Corporation shares are owned by institutional investors. Comparatively, 70.6% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 3.4% of Starbucks Corporation shares are owned by insiders. Comparatively, 20.3% of shares of all “Restaurants & Bars” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Starbucks Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Starbucks Corporation Competitors||1.52%||19.28%||1.61%|
Valuation and Earnings
This table compares Starbucks Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Starbucks Corporation||$22.40 billion||$5.14 billion||27.15|
|Starbucks Corporation Competitors||$2.03 billion||$348.56 million||-5.74|
Starbucks Corporation has higher revenue and earnings than its rivals. Starbucks Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently the more expensive than other companies in its industry.
Starbucks Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. 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 3.1% and pay out 61.2% of their earnings in the form of a dividend.
This is a summary of recent ratings and recommmendations for Starbucks Corporation and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Starbucks Corporation Competitors||364||1689||2170||82||2.46|
Starbucks Corporation currently has a consensus target price of $64.36, indicating a potential upside of 20.33%. All “Restaurants & Bars” companies have a potential upside of 12.91%. Given Starbucks Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Starbucks Corporation is more favorable than its rivals.
Starbucks Corporation beats its rivals on 13 of the 15 factors compared.
Starbucks Corporation Company Profile
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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