Starbucks Corporation (SBUX)vsConstellation Brands Inc Class A (STZ)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
STZ
Constellation Brands Inc Class A
$151.56
-0.73%
CONSUMER DEFENSIVE · Cap: $26.58B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 302% more annual revenue ($37.70B vs $9.38B). STZ leads profitability with a 11.8% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.53. STZ earns a higher WallStSmart Score of 50/100 (D+).
SBUX
Hold39
out of 100
Grade: F
STZ
Hold50
out of 100
Grade: D+
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
-276.7%
Fair Value
$43.32
Current Price
$151.56
$108.24 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Strong operational efficiency at 33.9%
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 9.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : STZ
The strongest argument for STZ centers on Operating Margin.
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 : STZ
The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
SBUX profiles as a value stock while STZ is a declining play — different risk/reward profiles.
SBUX carries more volatility with a beta of 0.93 — expect wider price swings.
SBUX is growing revenue faster at 5.5% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
STZ scores higher overall (50/100 vs 39/100). Both earn "Hold" 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.
Constellation Brands Inc Class A
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.
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