Starbucks Corporation (SBUX)vsSpotify Technology SA (SPOT)
SBUX
Starbucks Corporation
$104.93
+0.64%
CONSUMER CYCLICAL · Cap: $118.83B
SPOT
Spotify Technology SA
$417.83
-2.25%
COMMUNICATION SERVICES · Cap: $87.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 119% more annual revenue ($38.47B vs $17.53B). SPOT leads profitability with a 15.4% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.79. SPOT earns a higher WallStSmart Score of 64/100 (C+).
SBUX
Hold49
out of 100
Grade: D+
SPOT
Buy64
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
-44.3%
Fair Value
$337.63
Current Price
$417.83
$80.20 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Earnings expanding 32.6% YoY
Every $100 of equity generates 38 in profit
Earnings expanding 222.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
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
Moderate valuation
Trading at 8.8x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 15.8%.
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 : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
SBUX profiles as a value stock while SPOT is a mature play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.55 — expect wider price swings.
SBUX is growing revenue faster at 8.8% — sustainability is the question.
SPOT generates stronger free cash flow (845M), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (64/100 vs 49/100), backed by strong 15.4% margins. 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.
Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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