Starbucks (NASDAQ: SBUX) and GREENE KING PLC/S (OTCMKTS:GKNGY) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
This is a summary of current ratings and target prices for Starbucks and GREENE KING PLC/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GREENE KING PLC/S||0||0||0||0||N/A|
Starbucks presently has a consensus target price of $61.42, suggesting a potential upside of 26.35%. Given Starbucks’ higher probable upside, equities research analysts clearly believe Starbucks is more favorable than GREENE KING PLC/S.
Valuation and Earnings
This table compares Starbucks and GREENE KING PLC/S’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Starbucks||$22.39 billion||3.00||$2.88 billion||$2.06||23.60|
|GREENE KING PLC/S||$2.87 billion||0.95||$196.23 million||$1.83||9.60|
Starbucks has higher revenue and earnings than GREENE KING PLC/S. GREENE KING PLC/S is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
72.1% of Starbucks shares are owned by institutional investors. 3.4% of Starbucks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
Starbucks has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, GREENE KING PLC/S has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.
Starbucks pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. GREENE KING PLC/S pays an annual dividend of $0.87 per share and has a dividend yield of 5.0%. Starbucks pays out 58.3% of its earnings in the form of a dividend. GREENE KING PLC/S pays out 47.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. GREENE KING PLC/S is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Starbucks and GREENE KING PLC/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GREENE KING PLC/S||N/A||N/A||N/A|
Starbucks beats GREENE KING PLC/S on 13 of the 15 factors compared between the two stocks.
Starbucks Company Profile
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, and food and snacks; 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. It offers its products under the Starbucks, Teavana, Tazo, Seattle's Best Coffee, Evolution Fresh, La Boulange, Ethos, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, premium Tazo, and Starbucks VIA brand names. As of April 26, 2018, the company operated 28,209 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
GREENE KING PLC/S Company Profile
Greene King plc operates as a pub retailer and brewer in the United Kingdom. The company operates through Pub Company, Pub Partners, and Brewing & Brands segments. Its retail brands and formats include Greene King Local Pubs, Hungry Horse, Flaming Grill, Farmhouse Inns, and Chef & Brewer. The company is also involved in brewing, marketing, and selling beer under the Greene King IPA, Old Speckled Hen, Abbot Ale, and Belhaven Best brands. In addition, Greene King plc engages in the employment, financing, pension trustee, and property businesses. It operates 2,924 pubs, restaurants, and hotels across England, Wales, and Scotland, including 1,769 retail pubs, restaurants, and hotels, and 1,155 tenanted, leased, and franchised pubs. Greene King plc was founded in 1799 and is headquartered in Bury St Edmunds, the United Kingdom.
Receive News & Ratings for Starbucks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Starbucks and related companies with MarketBeat.com's FREE daily email newsletter.