SBUX vs. DNKN, SHAK, CNNE, GRIL, MCD, CMG, YUM, DRI, DPZ, and TXRH
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include Dunkin' Brands Group (DNKN), Shake Shack (SHAK), Cannae (CNNE), Muscle Maker (GRIL), McDonald's (MCD), Chipotle Mexican Grill (CMG), Yum! Brands (YUM), Darden Restaurants (DRI), Domino's Pizza (DPZ), and Texas Roadhouse (TXRH).
Dunkin' Brands Group (NASDAQ:DNKN) and Starbucks (NASDAQ:SBUX) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, community ranking, profitability, institutional ownership, valuation, risk, dividends and media sentiment.
82.0% of Dunkin' Brands Group shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 1.8% of Dunkin' Brands Group shares are held by insiders. Comparatively, 2.0% of Starbucks shares are held by 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.
Starbucks has a consensus target price of $91.71, suggesting a potential upside of 23.85%. Given Dunkin' Brands Group's higher possible upside, analysts plainly believe Starbucks is more favorable than Dunkin' Brands Group.
Dunkin' Brands Group pays an annual dividend of $1.61 per share and has a dividend yield of 1.5%. Starbucks pays an annual dividend of $2.28 per share and has a dividend yield of 3.1%. Dunkin' Brands Group pays out 50.8% of its earnings in the form of a dividend. Starbucks pays out 62.8% 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. Starbucks has raised its dividend for 14 consecutive years. Starbucks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Starbucks received 1447 more outperform votes than Dunkin' Brands Group when rated by MarketBeat users. Likewise, 76.56% of users gave Starbucks an outperform vote while only 63.08% of users gave Dunkin' Brands Group an outperform vote.
Dunkin' Brands Group has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Starbucks has higher revenue and earnings than Dunkin' Brands Group. Starbucks is trading at a lower price-to-earnings ratio than Dunkin' Brands Group, indicating that it is currently the more affordable of the two stocks.
In the previous week, Starbucks had 58 more articles in the media than Dunkin' Brands Group. MarketBeat recorded 58 mentions for Starbucks and 0 mentions for Dunkin' Brands Group. Dunkin' Brands Group's average media sentiment score of 0.28 beat Starbucks' score of 0.00 indicating that Starbucks is being referred to more favorably in the news media.
Dunkin' Brands Group has a net margin of 16.84% compared to Dunkin' Brands Group's net margin of 11.38%. Starbucks' return on equity of -39.92% beat Dunkin' Brands Group's return on equity.
Summary
Starbucks beats Dunkin' Brands Group on 14 of the 20 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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