Starbucks Corporation (SBUX)vsYum China Holdings Inc (YUMC)
SBUX
Starbucks Corporation
$104.97
-0.88%
CONSUMER CYCLICAL · Cap: $119.63B
YUMC
Yum China Holdings Inc
$48.39
+1.15%
CONSUMER CYCLICAL · Cap: $17.13B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 218% more annual revenue ($38.47B vs $12.09B). YUMC leads profitability with a 7.8% profit margin vs 3.9%. YUMC appears more attractively valued with a PEG of 1.27. YUMC earns a higher WallStSmart Score of 62/100 (C+).
SBUX
Hold49
out of 100
Grade: D+
YUMC
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.7%
Fair Value
$135.29
Current Price
$104.97
$30.32 discount
Margin of Safety
-18.1%
Fair Value
$47.52
Current Price
$48.39
$0.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Earnings expanding 32.6% YoY
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
7.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bull Case : YUMC
PEG of 1.27 suggests the stock is reasonably priced for its growth.
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 : YUMC
The primary concerns for YUMC are Profit Margin.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 1.01 — expect wider price swings.
YUMC is growing revenue faster at 9.7% — sustainability is the question.
YUMC generates stronger free cash flow (406M), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
YUMC scores higher overall (62/100 vs 49/100). SBUX offers better value entry with a 26.7% 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.
Yum China Holdings Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.
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