Starbucks Corporation (SBUX)vsUnion Pacific Corporation (UNP)
SBUX
Starbucks Corporation
$104.93
+0.64%
CONSUMER CYCLICAL · Cap: $118.83B
UNP
Union Pacific Corporation
$264.65
-0.09%
INDUSTRIALS · Cap: $157.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 56% more annual revenue ($38.47B vs $24.70B). UNP leads profitability with a 29.2% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.79. UNP earns a higher WallStSmart Score of 60/100 (C).
SBUX
Hold49
out of 100
Grade: D+
UNP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$135.09
Current Price
$104.93
$30.16 discount
Margin of Safety
-76.6%
Fair Value
$150.01
Current Price
$264.65
$114.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Earnings expanding 32.6% YoY
Every $100 of equity generates 41 in profit
Strong operational efficiency at 40.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Trading at 8.5x book value
3.2% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bull Case : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 79.6x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.
Bear Case : UNP
The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 1.01 — expect wider price swings.
SBUX is growing revenue faster at 8.8% — sustainability is the question.
UNP generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UNP scores higher overall (60/100 vs 49/100), backed by strong 29.2% margins. 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.
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.
Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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