SBUX vs. LOW, CVS, BKNG, TJX, TGT, MELI, JD, ORLY, DG, and AZO
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include Lowe's Companies (LOW), CVS Health (CVS), Booking (BKNG), TJX Companies (TJX), Target (TGT), MercadoLibre (MELI), JD.com (JD), O'Reilly Automotive (ORLY), Dollar General (DG), and AutoZone (AZO). These companies are all part of the "retail/wholesale" sector.
Starbucks vs.
Lowe's Companies (NYSE:LOW) and Starbucks (NASDAQ:SBUX) are both large-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, media sentiment, analyst recommendations, community ranking, valuation, risk and institutional ownership.
Lowe's Companies has higher revenue and earnings than Starbucks. Lowe's Companies is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
In the previous week, Lowe's Companies had 21 more articles in the media than Starbucks. MarketBeat recorded 33 mentions for Lowe's Companies and 12 mentions for Starbucks. Starbucks' average media sentiment score of 0.14 beat Lowe's Companies' score of 0.05 indicating that Starbucks is being referred to more favorably in the news media.
Lowe's Companies currently has a consensus price target of $224.81, suggesting a potential upside of 13.91%. Starbucks has a consensus price target of $108.74, suggesting a potential upside of 10.17%. Given Lowe's Companies' higher probable upside, analysts plainly believe Lowe's Companies is more favorable than Starbucks.
Lowe's Companies has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
72.6% of Lowe's Companies shares are owned by institutional investors. Comparatively, 69.2% of Starbucks shares are owned by institutional investors. 0.2% of Lowe's Companies shares are owned by company insiders. Comparatively, 2.0% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Starbucks received 612 more outperform votes than Lowe's Companies when rated by MarketBeat users. Likewise, 78.30% of users gave Starbucks an outperform vote while only 71.76% of users gave Lowe's Companies an outperform vote.
Lowe's Companies pays an annual dividend of $4.20 per share and has a dividend yield of 2.1%. Starbucks pays an annual dividend of $2.12 per share and has a dividend yield of 2.1%. Lowe's Companies pays out 42.0% of its earnings in the form of a dividend. Starbucks pays out 73.9% 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. Lowe's Companies has raised its dividend for 49 consecutive years and Starbucks has raised its dividend for 12 consecutive years.
Starbucks has a net margin of 10.09% compared to Lowe's Companies' net margin of 6.63%. Starbucks' return on equity of -39.78% beat Lowe's Companies' return on equity.
Summary
Lowe's Companies beats Starbucks on 11 of the 21 factors compared between the two stocks.
New MarketBeat Followers Over Time
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.
Media Sentiment Over Time
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.
Starbucks Competitors List
