YUM vs. SBUX, CMG, DRI, DPZ, TXRH, WEN, EAT, CAKE, BLMN, and PZZA
Should you be buying Yum! Brands stock or one of its competitors? The main competitors of Yum! Brands include Starbucks (SBUX), Chipotle Mexican Grill (CMG), Darden Restaurants (DRI), Domino's Pizza (DPZ), Texas Roadhouse (TXRH), Wendy's (WEN), Brinker International (EAT), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), and Papa John's International (PZZA). These companies are all part of the "restaurants" industry.
Starbucks (NASDAQ:SBUX) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, community ranking, analyst recommendations, earnings, institutional ownership, profitability, media sentiment, risk and dividends.
72.3% of Starbucks shares are held by institutional investors. Comparatively, 82.4% of Yum! Brands shares are held by institutional investors. 2.0% 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, endowments and hedge funds believe a company will outperform the market over the long term.
In the previous week, Starbucks had 38 more articles in the media than Yum! Brands. MarketBeat recorded 48 mentions for Starbucks and 10 mentions for Yum! Brands. Starbucks' average media sentiment score of 0.71 beat Yum! Brands' score of 0.42 indicating that Yum! Brands is being referred to more favorably in the news media.
Starbucks has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
Starbucks received 1007 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 76.72% of users gave Starbucks an outperform vote while only 65.30% of users gave Yum! Brands an outperform vote.
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.
Starbucks currently has a consensus price target of $96.43, suggesting a potential upside of 20.21%. Yum! Brands has a consensus price target of $143.27, suggesting a potential upside of 4.25%. Given Yum! Brands' higher possible upside, analysts plainly believe Starbucks is more favorable than Yum! Brands.
Yum! Brands has a net margin of 22.92% compared to Yum! Brands' net margin of 11.38%. Starbucks' return on equity of -18.64% beat Yum! Brands' return on equity.
Starbucks pays an annual dividend of $2.28 per share and has a dividend yield of 2.8%. Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. Starbucks pays out 62.8% of its earnings in the form of a dividend. Yum! Brands pays out 47.5% 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 increased its dividend for 14 consecutive years and Yum! Brands has increased its dividend for 7 consecutive years. Starbucks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Yum! Brands beats Starbucks on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding YUM 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 NYSE 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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