Yum! Brands (YUM) Competitors

Yum! Brands (NYSE:YUM) and Starbucks (NASDAQ:SBUX) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their media sentiment, earnings, risk, valuation, profitability, institutional ownership, dividends, community ranking and analyst recommendations.

Which has more volatility & risk, YUM or SBUX?

Yum! Brands has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Does the MarketBeat Community prefer YUM or SBUX?

Starbucks received 1039 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 76.18% of users gave Starbucks an outperform vote while only 64.33% of users gave Yum! Brands an outperform vote.

Company	Underperform	Outperform
Yum! Brands	Outperform Votes 1084 64.33%	Underperform Votes 601 35.67%
Starbucks	Outperform Votes 2123 76.18%	Underperform Votes 664 23.82%

Does the media refer more to YUM or SBUX?

In the previous week, Starbucks had 42 more articles in the media than Yum! Brands. MarketBeat recorded 78 mentions for Starbucks and 36 mentions for Yum! Brands. Yum! Brands' average media sentiment score of 1.28 beat Starbucks' score of 0.55 indicating that Yum! Brands is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Yum! Brands	19 Very Positive mention(s)	4 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Starbucks	32 Very Positive mention(s)	1 Positive mention(s)	28 Neutral mention(s)	12 Negative mention(s)	3 Very Negative mention(s)	Positive

Do institutionals & insiders have more ownership in YUM or SBUX?

82.4% of Yum! Brands shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 0.3% of Yum! Brands shares are held by insiders. Comparatively, 0.1% of Starbucks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Do analysts rate YUM or SBUX?

Yum! Brands presently has a consensus target price of $156.70, indicating a potential upside of 5.17%. Starbucks has a consensus target price of $98.72, indicating a potential upside of 15.34%. Given Starbucks' stronger consensus rating and higher probable upside, analysts clearly believe Starbucks is more favorable than Yum! Brands.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yum! Brands	0 Sell rating(s)	16 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.27
Starbucks	2 Sell rating(s)	9 Hold rating(s)	16 Buy rating(s)	0 Strong Buy rating(s)	2.52

Is YUM or SBUX a better dividend stock?

Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.9%. Yum! Brands pays out 56.6% of its earnings in the form of a dividend. Starbucks pays out 88.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Yum! Brands has increased its dividend for 8 consecutive years and Starbucks has increased its dividend for 15 consecutive years. Starbucks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has higher earnings and valuation, YUM or SBUX?

Starbucks has higher revenue and earnings than Yum! Brands. Yum! Brands is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yum! Brands	$7.74B	5.35	$1.49B	$5.02	29.68
Starbucks	$36.35B	2.68	$3.76B	$2.76	31.01

Is YUM or SBUX more profitable?

Yum! Brands has a net margin of 19.68% compared to Starbucks' net margin of 9.73%. Yum! Brands' return on equity of -20.33% beat Starbucks' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Yum! Brands	19.68%	-20.33%	24.19%
Starbucks	9.73%	-44.97%	11.47%

Summary

Starbucks beats Yum! Brands on 11 of the 21 factors compared between the two stocks.