Starbucks Corporation (SBUX)vsSouthern Company (SO)
SBUX
Starbucks Corporation
$104.93
+0.64%
CONSUMER CYCLICAL · Cap: $118.83B
SO
Southern Company
$91.80
-0.68%
UTILITIES · Cap: $103.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 27% more annual revenue ($38.47B vs $30.18B). SO leads profitability with a 14.5% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.79. SO earns a higher WallStSmart Score of 56/100 (C).
SBUX
Hold49
out of 100
Grade: D+
SO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$135.09
Current Price
$104.93
$30.16 discount
Margin of Safety
-26.1%
Fair Value
$73.33
Current Price
$91.80
$18.47 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Earnings expanding 32.6% YoY
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.9% margin — thin
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
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 : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 79.6x leaves little room for execution misses. Thin 3.9% margins leave little buffer for downturns.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
SBUX carries more volatility with a beta of 1.01 — 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
SO scores higher overall (56/100 vs 49/100). 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.
Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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