Starbucks (NASDAQ:SBUX – Get Free Report) and Viking (NYSE:VIK – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Starbucks has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Viking has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.
Valuation & Earnings
This table compares Starbucks and Viking”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Starbucks | $37.18 billion | 3.31 | $1.86 billion | $1.74 | 61.98 |
| Viking | $6.50 billion | 6.07 | $1.15 billion | $3.01 | 29.41 |
Starbucks has higher revenue and earnings than Viking. Viking is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
72.3% of Starbucks shares are owned by institutional investors. Comparatively, 98.8% of Viking shares are owned by institutional investors. 0.0% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Starbucks and Viking’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Starbucks | 5.17% | -34.10% | 9.03% |
| Viking | 19.33% | 117.98% | 10.80% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Starbucks and Viking, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Starbucks | 4 | 11 | 18 | 1 | 2.47 |
| Viking | 1 | 2 | 16 | 0 | 2.79 |
Starbucks currently has a consensus price target of $110.30, indicating a potential upside of 2.27%. Viking has a consensus price target of $107.50, indicating a potential upside of 21.43%. Given Viking’s stronger consensus rating and higher probable upside, analysts clearly believe Viking is more favorable than Starbucks.
Summary
Viking beats Starbucks on 9 of the 15 factors compared between the two stocks.
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.
About Viking
Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.
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