Comparing Starbucks Corporation (SBUX) & Its Competitors

Starbucks Corporation (NASDAQ: SBUX) is one of 44 publicly-traded companies in the “Restaurants & Bars” industry, but how does it contrast to its rivals? We will compare Starbucks Corporation to similar businesses based on the strength of its dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Profitability

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

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.

Institutional and Insider 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, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for Starbucks Corporation and its rivals, 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 1558 2152 73 2.50

Starbucks Corporation presently has a consensus price target of $64.03, indicating a potential upside of 14.40%. As a group, “Restaurants & Bars” companies have a potential upside of 9.09%. Given Starbucks Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Starbucks Corporation is more favorable than its rivals.

Risk and Volatility

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

Valuation and Earnings

This table compares Starbucks Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Starbucks Corporation $22.40 billion $5.14 billion 28.41
Starbucks Corporation Competitors $2.04 billion $349.24 million -2.74

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 more expensive than other companies in its industry.

Summary

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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