WallStSmart

Papa John's International Inc (PZZA)vsStarbucks Corporation (SBUX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 1810% more annual revenue ($38.47B vs $2.01B). SBUX leads profitability with a 3.9% profit margin vs 1.4%. SBUX appears more attractively valued with a PEG of 1.37. SBUX earns a higher WallStSmart Score of 51/100 (C-).

PZZA

Hold

35

out of 100

Grade: F

Growth: 2.0Profit: 5.0Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 2.78

SBUX

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 5.0Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PZZAUndervalued (+37.5%)

Margin of Safety

+37.5%

Fair Value

$54.44

Current Price

$34.35

$20.09 discount

UndervaluedFair: $54.44Overvalued
SBUXUndervalued (+22.1%)

Margin of Safety

+22.1%

Fair Value

$127.23

Current Price

$100.15

$27.08 discount

UndervaluedFair: $127.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PZZA1 strengths · Avg: 10.0/10
Debt/EquityHealth
-2.1210/10

Conservative balance sheet, low leverage

SBUX3 strengths · Avg: 9.0/10
Debt/EquityHealth
-2.8810/10

Conservative balance sheet, low leverage

Market CapQuality
$115.78B9/10

Large-cap with strong market position

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

Areas to Watch

PZZA4 concerns · Avg: 3.0/10
Market CapQuality
$1.19B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SBUX4 concerns · Avg: 2.8/10
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

P/E RatioValuation
77.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : PZZA

The strongest argument for PZZA centers on Debt/Equity.

Bull Case : SBUX

The strongest argument for SBUX centers on Debt/Equity, Market Cap, EPS Growth. PEG of 1.37 suggests the stock is reasonably priced for its growth.

Bear Case : PZZA

The primary concerns for PZZA are Market Cap, Return on Equity, Profit Margin. A P/E of 43.4x leaves little room for execution misses. Thin 1.4% margins leave little buffer for downturns.

Bear Case : SBUX

The primary concerns for SBUX are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 77.5x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

PZZA carries more volatility with a beta of 1.13 — expect wider price swings.

SBUX is growing revenue faster at 8.8% — sustainability is the question.

SBUX generates stronger free cash flow (92M), providing more financial flexibility.

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

Bottom Line

SBUX scores higher overall (51/100 vs 35/100). PZZA offers better value entry with a 37.5% 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.

Papa John's International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Papa John's International, Inc. operates and franchises pizza delivery and take-out restaurants under the Papa John's trademark in the United States and internationally. The company is headquartered in Louisville, Kentucky.

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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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