Starbucks (NASDAQ:SBUX – Get Free Report) and Pinstripes (NYSE:PNST – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Volatility and Risk
Starbucks has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Pinstripes has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500.
Institutional and Insider Ownership
72.3% of Starbucks shares are owned by institutional investors. Comparatively, 56.8% of Pinstripes shares are owned by institutional investors. 2.0% of Starbucks shares are owned by company insiders. Comparatively, 22.8% of Pinstripes 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.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Starbucks | 11.38% | -49.91% | 14.27% |
Pinstripes | N/A | N/A | -8.99% |
Analyst Recommendations
This is a summary of recent recommendations for Starbucks and Pinstripes, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Starbucks | 0 | 16 | 9 | 0 | 2.36 |
Pinstripes | 0 | 0 | 3 | 0 | 3.00 |
Starbucks currently has a consensus price target of $91.71, indicating a potential upside of 19.80%. Pinstripes has a consensus price target of $6.00, indicating a potential upside of 166.67%. Given Pinstripes’ stronger consensus rating and higher possible upside, analysts plainly believe Pinstripes is more favorable than Starbucks.
Earnings and Valuation
This table compares Starbucks and Pinstripes’ revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Starbucks | $35.98 billion | 2.41 | $4.12 billion | $3.63 | 21.09 |
Pinstripes | $118.72 million | 0.76 | -$6.79 million | N/A | N/A |
Starbucks has higher revenue and earnings than Pinstripes.
Summary
Starbucks beats Pinstripes on 8 of the 12 factors compared between the two stocks.
About Starbucks
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
About Pinstripes
Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.
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