Yum! Brands (YUM) Competitors

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

Is SBUX or YUM a better dividend stock?

Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 3.1%. Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Starbucks pays out 78.7% 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 pays out 54.4% of its earnings in the form of a dividend. 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.

Does the MarketBeat Community believe in SBUX or YUM?

Starbucks received 1035 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 76.21% of users gave Starbucks an outperform vote while only 64.46% of users gave Yum! Brands an outperform vote.

Company	Underperform	Outperform
Starbucks	Outperform Votes 2118 76.21%	Underperform Votes 661 23.79%
Yum! Brands	Outperform Votes 1083 64.46%	Underperform Votes 597 35.54%

Do analysts rate SBUX or YUM?

Starbucks currently has a consensus target price of $100.58, indicating a potential upside of 27.49%. Yum! Brands has a consensus target price of $153.52, indicating a potential upside of 3.33%. Given Starbucks' stronger consensus rating and higher probable upside, research analysts clearly believe Starbucks is more favorable than Yum! Brands.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starbucks	2 Sell rating(s)	11 Hold rating(s)	16 Buy rating(s)	0 Strong Buy rating(s)	2.48
Yum! Brands	0 Sell rating(s)	16 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.27

Is SBUX or YUM 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
Starbucks	9.73%	-44.97%	11.47%
Yum! Brands	19.68%	-20.33%	24.19%

Which has better valuation & earnings, SBUX or YUM?

Starbucks has higher revenue and earnings than Yum! Brands. Starbucks is trading at a lower price-to-earnings ratio than Yum! Brands, 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
Starbucks	$36.15B	2.48	$3.76B	$3.10	25.45
Yum! Brands	$7.55B	5.48	$1.49B	$5.22	28.46

Does the media refer more to SBUX or YUM?

In the previous week, Starbucks had 86 more articles in the media than Yum! Brands. MarketBeat recorded 125 mentions for Starbucks and 39 mentions for Yum! Brands. Yum! Brands' average media sentiment score of 1.00 beat Starbucks' score of 0.49 indicating that Yum! Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Starbucks	52 Very Positive mention(s)	12 Positive mention(s)	24 Neutral mention(s)	25 Negative mention(s)	5 Very Negative mention(s)	Neutral
Yum! Brands	19 Very Positive mention(s)	3 Positive mention(s)	10 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, SBUX or YUM?

Starbucks has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Yum! Brands has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

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

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

Summary

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