SBUX vs. TJX, CVS, BKNG, MELI, TGT, CMG, LOW, ORLY, PDD, and AZO
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include TJX Companies (TJX), CVS Health (CVS), Booking (BKNG), MercadoLibre (MELI), Target (TGT), Chipotle Mexican Grill (CMG), Lowe's Companies (LOW), O'Reilly Automotive (ORLY), PDD (PDD), and AutoZone (AZO). These companies are all part of the "retail/wholesale" sector.
TJX Companies (NYSE:TJX) and Starbucks (NASDAQ:SBUX) are both large-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, media sentiment, earnings, analyst recommendations, profitability, risk and community ranking.
TJX Companies has higher revenue and earnings than Starbucks. Starbucks is trading at a lower price-to-earnings ratio than TJX Companies, indicating that it is currently the more affordable of the two stocks.
89.3% of TJX Companies shares are owned by institutional investors. Comparatively, 70.1% of Starbucks shares are owned by institutional investors. 0.1% of TJX Companies shares are owned by insiders. Comparatively, 2.0% of Starbucks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Starbucks received 882 more outperform votes than TJX Companies when rated by MarketBeat users. Likewise, 77.16% of users gave Starbucks an outperform vote while only 74.97% of users gave TJX Companies an outperform vote.
Starbucks has a net margin of 11.70% compared to Starbucks' net margin of 8.25%. Starbucks' return on equity of 64.18% beat TJX Companies' return on equity.
TJX Companies currently has a consensus price target of $102.19, indicating a potential upside of 6.19%. Starbucks has a consensus price target of $110.90, indicating a potential upside of 21.86%. Given TJX Companies' higher possible upside, analysts plainly believe Starbucks is more favorable than TJX Companies.
TJX Companies pays an annual dividend of $1.33 per share and has a dividend yield of 1.4%. Starbucks pays an annual dividend of $2.28 per share and has a dividend yield of 2.5%. TJX Companies pays out 34.5% of its earnings in the form of a dividend. Starbucks pays out 61.0% 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. TJX Companies has increased its dividend for 2 consecutive years and Starbucks has increased its dividend for 14 consecutive years. Starbucks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
TJX Companies has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
In the previous week, Starbucks had 37 more articles in the media than TJX Companies. MarketBeat recorded 58 mentions for Starbucks and 21 mentions for TJX Companies. Starbucks' average media sentiment score of 0.54 beat TJX Companies' score of 0.32 indicating that TJX Companies is being referred to more favorably in the media.
Summary
TJX Companies beats Starbucks on 11 of the 21 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.
Skip ChartThis 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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