SBUX vs. MELI, CMG, TGT, CVS, ORLY, TJX, AZO, JD, ROST, and BKNG
Should you be buying Starbucks stock or one of its competitors? The main competitors of Starbucks include MercadoLibre (MELI), Chipotle Mexican Grill (CMG), Target (TGT), CVS Health (CVS), O'Reilly Automotive (ORLY), TJX Companies (TJX), AutoZone (AZO), JD.com (JD), Ross Stores (ROST), and Booking (BKNG). These companies are all part of the "retail/wholesale" sector.
Starbucks (NASDAQ:SBUX) and MercadoLibre (NASDAQ:MELI) 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 community ranking, risk, profitability, dividends, media sentiment, institutional ownership, valuation, earnings and analyst recommendations.
Starbucks has higher revenue and earnings than MercadoLibre. Starbucks is trading at a lower price-to-earnings ratio than MercadoLibre, indicating that it is currently the more affordable of the two stocks.
Starbucks has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, MercadoLibre has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.
Starbucks pays an annual dividend of $2.28 per share and has a dividend yield of 3.1%. MercadoLibre pays an annual dividend of $0.60 per share and has a dividend yield of 0.0%. Starbucks pays out 62.8% of its earnings in the form of a dividend. MercadoLibre pays out 2.7% 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.
72.3% of Starbucks shares are held by institutional investors. Comparatively, 87.6% of MercadoLibre shares are held by institutional investors. 2.0% of Starbucks shares are held by insiders. Comparatively, 0.1% of MercadoLibre shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
In the previous week, Starbucks had 64 more articles in the media than MercadoLibre. MarketBeat recorded 103 mentions for Starbucks and 39 mentions for MercadoLibre. MercadoLibre's average media sentiment score of 0.81 beat Starbucks' score of -0.19 indicating that MercadoLibre is being referred to more favorably in the news media.
Starbucks currently has a consensus price target of $96.43, indicating a potential upside of 31.20%. MercadoLibre has a consensus price target of $1,805.00, indicating a potential upside of 5.14%. Given Starbucks' higher possible upside, research analysts clearly believe Starbucks is more favorable than MercadoLibre.
Starbucks has a net margin of 11.38% compared to MercadoLibre's net margin of 7.17%. MercadoLibre's return on equity of 42.04% beat Starbucks' return on equity.
Starbucks received 1430 more outperform votes than MercadoLibre when rated by MarketBeat users. Likewise, 76.72% of users gave Starbucks an outperform vote while only 65.19% of users gave MercadoLibre an outperform vote.
Summary
Starbucks and MercadoLibre tied by winning 10 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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