Starbucks Corporation (SBUX)vsEssential Utilities Inc (WTRG)
SBUX
Starbucks Corporation
$106.44
+1.43%
CONSUMER CYCLICAL · Cap: $119.63B
WTRG
Essential Utilities Inc
$37.54
+0.13%
UTILITIES · Cap: $10.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 1455% more annual revenue ($38.47B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.78. WTRG earns a higher WallStSmart Score of 60/100 (C+).
SBUX
Hold49
out of 100
Grade: D+
WTRG
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
$106.44
$28.65 discount
Margin of Safety
+47.4%
Fair Value
$71.13
Current Price
$37.54
$33.59 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Earnings expanding 32.6% YoY
Strong operational efficiency at 32.4%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% 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 : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
SBUX profiles as a value stock while WTRG is a growth play — different risk/reward profiles.
SBUX carries more volatility with a beta of 1.01 — expect wider price swings.
WTRG is growing revenue faster at 15.7% — sustainability is the question.
SBUX generates stronger free cash flow (92M), providing more financial flexibility.
Bottom Line
WTRG scores higher overall (60/100 vs 49/100), backed by strong 24.9% margins and 15.7% revenue growth. 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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