WallStSmart

Chagee Holdings Limited American Depositary Shares (CHA)vsStarbucks Corporation (SBUX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 192% more annual revenue ($38.34B vs $13.14B). CHA leads profitability with a 10.2% profit margin vs 5.2%. CHA trades at a lower P/E of 12.2x. CHA earns a higher WallStSmart Score of 60/100 (C+).

CHA

Buy

60

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 6.0Quality: 9.0
Piotroski: 4/9Altman Z: 3.86

SBUX

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CHA.

SBUXUndervalued (+21.2%)

Margin of Safety

+21.2%

Fair Value

$125.82

Current Price

$98.74

$27.08 discount

UndervaluedFair: $125.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHA5 strengths · Avg: 9.0/10
EPS GrowthGrowth
591.0%10/10

Earnings expanding 591.0% YoY

Altman Z-ScoreHealth
3.8610/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.2x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

SBUX4 strengths · Avg: 9.3/10
EPS GrowthGrowth
85.7%10/10

Earnings expanding 85.7% YoY

Debt/EquityHealth
-2.9210/10

Conservative balance sheet, low leverage

Market CapQuality
$112.56B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.35B8/10

Generating 1.4B in free cash flow

Areas to Watch

CHA1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

SBUX4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
57.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CHA

The strongest argument for CHA centers on EPS Growth, Altman Z-Score, Debt/Equity.

Bull Case : SBUX

The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.19 suggests the stock is reasonably priced for its growth.

Bear Case : CHA

The primary concerns for CHA are Revenue Growth.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 57.4x leaves little room for execution misses.

Key Dynamics to Monitor

CHA is growing revenue faster at 2.5% — sustainability is the question.

SBUX generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CHA scores higher overall (60/100 vs 51/100). SBUX offers better value entry with a 21.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Chagee Holdings Limited American Depositary Shares

CONSUMER CYCLICAL · RESTAURANTS · USA

Chagee Holdings Ltd. is a Shanghai-based company founded in 2017 by Jun Jie Zhang. It specializes in selling freshly made tea drinks—such as tea lattes, teapuccinos, iced teas, and other creative beverages—along with related products like raw materials, packaging, and teahouse equipment.

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.

Want to dig deeper into these stocks?