Starbucks Corporation (SBUX)vsSpotify Technology SA (SPOT)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
SPOT
Spotify Technology SA
$473.21
-2.40%
COMMUNICATION SERVICES · Cap: $99.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 119% more annual revenue ($37.70B vs $17.19B). SPOT leads profitability with a 12.9% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.53. SPOT earns a higher WallStSmart Score of 62/100 (C+).
SBUX
Hold39
out of 100
Grade: F
SPOT
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Margin of Safety
+13.1%
Fair Value
$560.66
Current Price
$473.21
$87.45 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Every $100 of equity generates 32 in profit
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Expensive relative to growth rate
Trading at 10.1x book value
2.1% earnings growth
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, Market Cap, Debt/Equity.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 78.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : SPOT
The primary concerns for SPOT are PEG Ratio, Price/Book, EPS Growth. A P/E of 40.5x leaves little room for execution misses.
Key Dynamics to Monitor
SPOT carries more volatility with a beta of 1.72 — expect wider price swings.
SPOT is growing revenue faster at 6.8% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SPOT scores higher overall (62/100 vs 39/100). 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.
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.
Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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