WallStSmart

Starbucks Corporation (SBUX)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 227% more annual revenue ($38.47B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 3.9%. WDC appears more attractively valued with a PEG of 0.87. WDC earns a higher WallStSmart Score of 79/100 (B+).

SBUX

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 4.7Quality: 4.3
Piotroski: 2/9Altman Z: 1.07

WDC

Strong Buy

79

out of 100

Grade: B+

Growth: 7.3Profit: 9.5Value: 6.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SBUXUndervalued (+26.6%)

Margin of Safety

+26.6%

Fair Value

$135.09

Current Price

$104.97

$30.12 discount

UndervaluedFair: $135.09Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SBUX2 strengths · Avg: 8.5/10
Market CapQuality
$119.63B9/10

Large-cap with strong market position

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

WDC6 strengths · Avg: 9.8/10
Return on EquityProfitability
85.9%10/10

Every $100 of equity generates 86 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
477.2%10/10

Earnings expanding 477.2% YoY

Market CapQuality
$152.47B9/10

Large-cap with strong market position

Areas to Watch

SBUX4 concerns · Avg: 3.3/10
PEG RatioValuation
1.784/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WDC2 concerns · Avg: 3.0/10
P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
21.2x2/10

Trading at 21.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : SBUX

The strongest argument for SBUX centers on Market Cap, EPS Growth.

Bull Case : WDC

The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : SBUX

The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 80.8x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Price/Book.

Key Dynamics to Monitor

SBUX profiles as a value stock while WDC is a growth play — different risk/reward profiles.

WDC carries more volatility with a beta of 2.16 — expect wider price swings.

WDC is growing revenue faster at 45.5% — sustainability is the question.

WDC generates stronger free cash flow (978M), providing more financial flexibility.

Bottom Line

WDC scores higher overall (79/100 vs 49/100), backed by strong 55.3% margins and 45.5% revenue growth. SBUX offers better value entry with a 26.6% margin of safety. 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.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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