SBUX vs. TJX, CVS, CMG, TGT, BKNG, MELI, ORLY, LOW, AZO, and ROST
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include TJX Companies (TJX), CVS Health (CVS), Chipotle Mexican Grill (CMG), Target (TGT), Booking (BKNG), MercadoLibre (MELI), O'Reilly Automotive (ORLY), Lowe's Companies (LOW), AutoZone (AZO), and Ross Stores (ROST). These companies are all part of the "retail/wholesale" sector.
Starbucks (NASDAQ:SBUX) and TJX Companies (NYSE:TJX) 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 dividends, risk, earnings, valuation, media sentiment, analyst recommendations, community ranking, institutional ownership and profitability.
Starbucks pays an annual dividend of $2.28 per share and has a dividend yield of 2.6%. TJX Companies pays an annual dividend of $1.33 per share and has a dividend yield of 1.4%. Starbucks pays out 61.0% of its earnings in the form of a dividend. TJX Companies pays out 34.5% 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 a net margin of 11.70% compared to TJX Companies' net margin of 8.25%. TJX Companies' return on equity of 64.18% beat Starbucks' return on equity.
Starbucks presently has a consensus target price of $106.68, suggesting a potential upside of 21.41%. TJX Companies has a consensus target price of $102.19, suggesting a potential upside of 8.13%. Given Starbucks' higher possible upside, research analysts plainly believe Starbucks is more favorable than TJX Companies.
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.
In the previous week, Starbucks had 61 more articles in the media than TJX Companies. MarketBeat recorded 72 mentions for Starbucks and 11 mentions for TJX Companies. TJX Companies' average media sentiment score of 1.33 beat Starbucks' score of 0.19 indicating that TJX Companies is being referred to more favorably in the news media.
72.3% of Starbucks shares are held by institutional investors. Comparatively, 91.1% of TJX Companies shares are held by institutional investors. 2.0% of Starbucks shares are held by insiders. Comparatively, 0.1% of TJX Companies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Starbucks received 886 more outperform votes than TJX Companies when rated by MarketBeat users. Likewise, 77.00% of users gave Starbucks an outperform vote while only 74.97% of users gave TJX Companies an outperform vote.
Starbucks has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, TJX Companies has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
Summary
TJX Companies beats Starbucks on 11 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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