Starbucks Corporation (SBUX)vsUnion Pacific Corporation (UNP)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
UNP
Union Pacific Corporation
$241.33
+0.69%
INDUSTRIALS · Cap: $142.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 54% more annual revenue ($37.70B vs $24.51B). UNP leads profitability with a 29.1% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.53. UNP earns a higher WallStSmart Score of 60/100 (C).
SBUX
Hold39
out of 100
Grade: F
UNP
Buy60
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
$211.98
Current Price
$241.33
$29.35 premium
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 40 in profit
Strong operational efficiency at 40.9%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.2B in free cash flow
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
Revenue declined 0.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.1% and operating margin at 40.9%.
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 : UNP
The primary concerns for UNP are PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
SBUX profiles as a value stock while UNP is a declining play — different risk/reward profiles.
UNP carries more volatility with a beta of 0.95 — 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
UNP scores higher overall (60/100 vs 39/100), backed by strong 29.1% margins. 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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