Head-To-Head Survey: Starbucks (NASDAQ:SBUX) versus Latitude 360 (OTCMKTS:LATX)

Latitude 360 (OTCMKTS:LATX) and Starbucks (NASDAQ:SBUX) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

72.3% of Starbucks shares are held by institutional investors. 24.5% of Latitude 360 shares are held by company insiders. Comparatively, 0.1% of Starbucks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Latitude 360 and Starbucks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latitude 360	0	0	0	0	0.00
Starbucks	2	11	15	1	2.52

Starbucks has a consensus price target of $101.44, suggesting a potential upside of 16.54%. Given Starbucks’ stronger consensus rating and higher probable upside, analysts plainly believe Starbucks is more favorable than Latitude 360.

Valuation and Earnings

This table compares Latitude 360 and Starbucks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latitude 360	N/A	N/A	N/A	N/A	N/A
Starbucks	$37.18 billion	2.66	$3.76 billion	$1.64	53.07

Starbucks has higher revenue and earnings than Latitude 360.

Profitability

This table compares Latitude 360 and Starbucks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latitude 360	N/A	N/A	N/A
Starbucks	4.99%	-31.84%	7.46%

Summary

Starbucks beats Latitude 360 on 8 of the 10 factors compared between the two stocks.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.

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.