Starbucks Corporation (SBUX)vsVisa Inc. Class A (V)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
V
Visa Inc. Class A
$304.91
+0.38%
FINANCIAL SERVICES · Cap: $585.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Visa Inc. Class A generates 10% more annual revenue ($41.39B vs $37.70B). V leads profitability with a 50.2% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.53. V earns a higher WallStSmart Score of 68/100 (B-).
SBUX
Hold39
out of 100
Grade: F
V
Strong Buy68
out of 100
Grade: B-
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
+17.4%
Fair Value
$369.26
Current Price
$304.91
$64.35 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 54 in profit
Keeps 50 of every $100 in revenue as profit
Strong operational efficiency at 68.3%
Generating 6.4B 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
Moderate valuation
Trading at 15.2x book value
Grey zone — moderate risk
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : V
The strongest argument for V centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 50.2% and operating margin at 68.3%. Revenue growth of 14.6% demonstrates continued momentum.
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 : V
The primary concerns for V are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
SBUX profiles as a value stock while V is a mature play — different risk/reward profiles.
SBUX carries more volatility with a beta of 0.93 — expect wider price swings.
V is growing revenue faster at 14.6% — sustainability is the question.
V generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
V scores higher overall (68/100 vs 39/100), backed by strong 50.2% margins and 14.6% revenue growth. Both earn "Strong 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.
Visa Inc. Class A
FINANCIAL SERVICES · CREDIT SERVICES · USA
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the world's most valuable companies.
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