WallStSmart

eBay Inc (EBAY)vsStarbucks Corporation (SBUX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 216% more annual revenue ($37.91B vs $12.01B). EBAY leads profitability with a 18.6% profit margin vs 6.7%. SBUX appears more attractively valued with a PEG of 1.14. EBAY earns a higher WallStSmart Score of 70/100 (B-).

EBAY

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 4.0Quality: 6.0
Piotroski: 4/9Altman Z: 4.49

SBUX

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EBAYSignificantly Overvalued (-26.5%)

Margin of Safety

-26.5%

Fair Value

$95.82

Current Price

$118.62

$22.80 premium

UndervaluedFair: $95.82Overvalued
SBUXUndervalued (+19.8%)

Margin of Safety

+19.8%

Fair Value

$123.55

Current Price

$104.77

$18.78 discount

UndervaluedFair: $123.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBAY5 strengths · Avg: 9.4/10
Return on EquityProfitability
47.6%10/10

Every $100 of equity generates 48 in profit

EPS GrowthGrowth
55.0%10/10

Earnings expanding 55.0% YoY

Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.52B9/10

Large-cap with strong market position

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

SBUX4 strengths · Avg: 9.3/10
EPS GrowthGrowth
405.4%10/10

Earnings expanding 405.4% YoY

Debt/EquityHealth
-2.9210/10

Conservative balance sheet, low leverage

Market CapQuality
$118.19B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.35B8/10

Generating 1.4B in free cash flow

Areas to Watch

EBAY4 concerns · Avg: 3.8/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Debt/EquityHealth
1.533/10

Elevated debt levels

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

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
46.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EBAY

The strongest argument for EBAY centers on Return on Equity, EPS Growth, Altman Z-Score. Profitability is solid with margins at 18.6% and operating margin at 21.6%. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : SBUX

The strongest argument for SBUX centers on EPS Growth, Debt/Equity, Market Cap. PEG of 1.14 suggests the stock is reasonably priced for its growth.

Bear Case : EBAY

The primary concerns for EBAY are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 1.53 is elevated, increasing financial risk.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 46.9x leaves little room for execution misses.

Key Dynamics to Monitor

EBAY profiles as a mature stock while SBUX is a value play — different risk/reward profiles.

EBAY carries more volatility with a beta of 1.32 — expect wider price swings.

EBAY is growing revenue faster at 14.8% — sustainability is the question.

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

Bottom Line

EBAY scores higher overall (70/100 vs 51/100), backed by strong 18.6% margins and 14.8% revenue growth. SBUX offers better value entry with a 19.8% margin of safety. Both earn "Strong 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.

eBay Inc

CONSUMER CYCLICAL · INTERNET RETAIL · USA

eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website.

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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.

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