SBUX vs. CMG, MELI, CVS, TGT, TJX, ORLY, JD, AZO, LOW, and BKNG
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include Chipotle Mexican Grill (CMG), MercadoLibre (MELI), CVS Health (CVS), Target (TGT), TJX Companies (TJX), O'Reilly Automotive (ORLY), JD.com (JD), AutoZone (AZO), Lowe's Companies (LOW), and Booking (BKNG). These companies are all part of the "retail/wholesale" sector.
Chipotle Mexican Grill (NYSE:CMG) and Starbucks (NASDAQ:SBUX) are both large-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, media sentiment, earnings, community ranking, analyst recommendations and dividends.
Starbucks received 417 more outperform votes than Chipotle Mexican Grill when rated by MarketBeat users. Likewise, 76.72% of users gave Starbucks an outperform vote while only 59.87% of users gave Chipotle Mexican Grill an outperform vote.
Chipotle Mexican Grill has a net margin of 12.70% compared to Chipotle Mexican Grill's net margin of 11.38%. Starbucks' return on equity of 43.74% beat Chipotle Mexican Grill's return on equity.
Starbucks has higher revenue and earnings than Chipotle Mexican Grill. Starbucks is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.
91.3% of Chipotle Mexican Grill shares are owned by institutional investors. Comparatively, 72.3% of Starbucks shares are owned by institutional investors. 1.0% of Chipotle Mexican Grill shares are owned by company insiders. Comparatively, 2.0% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
In the previous week, Starbucks had 43 more articles in the media than Chipotle Mexican Grill. MarketBeat recorded 60 mentions for Starbucks and 17 mentions for Chipotle Mexican Grill. Starbucks' average media sentiment score of 0.60 beat Chipotle Mexican Grill's score of 0.30 indicating that Chipotle Mexican Grill is being referred to more favorably in the media.
Chipotle Mexican Grill presently has a consensus target price of $3,144.23, indicating a potential downside of 0.23%. Starbucks has a consensus target price of $96.43, indicating a potential upside of 22.27%. Given Chipotle Mexican Grill's higher possible upside, analysts plainly believe Starbucks is more favorable than Chipotle Mexican Grill.
Chipotle Mexican Grill has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Summary
Chipotle Mexican Grill beats Starbucks on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SBUX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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