Starbucks (NASDAQ:SBUX – Get Free Report) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its competitors? We will compare Starbucks to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.
Risk and Volatility
Starbucks has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Starbucks’ competitors have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.
Dividends
Starbucks pays an annual dividend of $2.48 per share and has a dividend yield of 2.3%. Starbucks pays out 112.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.8% of their earnings in the form of a dividend. Starbucks has increased its dividend for 15 consecutive years. Starbucks lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Institutional & Insider Ownership
72.3% of Starbucks shares are held by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 0.0% of Starbucks shares are held by insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and price targets for Starbucks and its competitors, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Starbucks | 4 | 15 | 21 | 0 | 2.42 |
| Starbucks Competitors | 3819 | 17310 | 25630 | 908 | 2.50 |
Starbucks presently has a consensus target price of $108.83, suggesting a potential downside of 1.02%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.46%. Given Starbucks’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Starbucks has less favorable growth aspects than its competitors.
Valuation and Earnings
This table compares Starbucks and its competitors revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Starbucks | $37.91 billion | $2.53 billion | 49.75 |
| Starbucks Competitors | $3.43 billion | $250.18 million | -159.99 |
Starbucks has higher revenue and earnings than its competitors. Starbucks 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 and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Starbucks | 6.66% | -38.61% | 10.40% |
| Starbucks Competitors | 8.57% | -41.62% | 2.16% |
Summary
Starbucks competitors beat Starbucks on 9 of the 15 factors compared.
About Starbucks
Starbucks Corporation is a global coffee company that roasts, markets and sells coffee and other beverages, along with food and related merchandise. Its offerings include brewed coffee, espresso-based drinks, teas and packaged coffee products. The company serves customers through company-operated and licensed stores, as well as through retail and food-service partnerships. Its stores also sell items such as mugs and coffee-making equipment. Founded in Seattle in 1971, Starbucks operates in North America and international markets, including China.
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