Starbucks (NASDAQ:SBUX) & Pinstripes (NYSE:PNST) Head-To-Head Analysis

Starbucks (NASDAQ:SBUX) and Pinstripes (NYSE:PNST) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Starbucks and Pinstripes’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Starbucks	$35.98 billion	2.39	$4.12 billion	$3.63	20.90
Pinstripes	$118.72 million	0.68	-$6.79 million	N/A	N/A

Starbucks has higher revenue and earnings than Pinstripes.

Insider & Institutional Ownership

72.3% of Starbucks shares are held by institutional investors. Comparatively, 56.8% of Pinstripes shares are held by institutional investors. 2.0% of Starbucks shares are held by company insiders. Comparatively, 22.8% of Pinstripes shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Starbucks and Pinstripes, as provided 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 $90.88, suggesting a potential upside of 19.76%. Pinstripes has a consensus price target of $6.00, suggesting a potential upside of 198.51%. Given Pinstripes’ stronger consensus rating and higher possible upside, analysts clearly believe Pinstripes is more favorable than Starbucks.

Profitability

This table compares Starbucks and Pinstripes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Starbucks	11.16%	-49.38%	13.79%
Pinstripes	N/A	N/A	-8.99%

Volatility and Risk

Starbucks has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Pinstripes has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.

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.