Head-To-Head Contrast: Starbucks Corporation (SBUX) vs. Its Competitors

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 related businesses based on the strength of its institutional ownership, earnings, dividends, valuation, profitability, analyst recommendations and risk.

Earnings and Valuation

This table compares Starbucks Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Starbucks Corporation $22.40 billion $5.14 billion 27.93
Starbucks Corporation Competitors $2.04 billion $349.24 million -4.53

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.

Profitability

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 12.93% 52.82% 21.42%
Starbucks Corporation Competitors 1.77% 12.50% 1.76%

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 company insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

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.

Volatility and Risk

Starbucks Corporation has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Starbucks Corporation’s competitors have a beta of 0.67, suggesting that their average share price is 33% less volatile than the S&P 500.

Analyst Recommendations

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 0 11 18 1 2.67
Starbucks Corporation Competitors 272 1551 2144 73 2.50

Starbucks Corporation currently has a consensus price target of $64.03, indicating a potential upside of 16.38%. As a group, “Restaurants & Bars” companies have a potential upside of 11.27%. Given Starbucks Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Starbucks Corporation is more favorable than its competitors.

Summary

Starbucks Corporation beats its competitors 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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