H2O America (HTO)vsStarbucks Corporation (SBUX)
HTO
H2O America
$57.60
-0.66%
UTILITIES · Cap: $2.37B
SBUX
Starbucks Corporation
$106.44
+1.43%
CONSUMER CYCLICAL · Cap: $119.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 4613% more annual revenue ($38.47B vs $816.28M). HTO leads profitability with a 12.9% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.78. HTO earns a higher WallStSmart Score of 57/100 (C).
HTO
Buy57
out of 100
Grade: C
SBUX
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.5%
Fair Value
$76.99
Current Price
$57.60
$19.39 discount
Margin of Safety
+26.6%
Fair Value
$135.09
Current Price
$106.44
$28.65 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.5%
Large-cap with strong market position
Earnings expanding 32.6% YoY
Areas to Watch
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bear Case : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 80.8x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 1.01 — expect wider price swings.
HTO is growing revenue faster at 9.4% — sustainability is the question.
SBUX generates stronger free cash flow (92M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
HTO scores higher overall (57/100 vs 49/100). SBUX offers better value entry with a 26.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
Starbucks Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture.
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