WallStSmart

Starbucks Corporation (SBUX)vsSterling Construction Company Inc (STRL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Starbucks Corporation generates 1234% more annual revenue ($38.47B vs $2.88B). STRL leads profitability with a 12.0% profit margin vs 3.9%. SBUX appears more attractively valued with a PEG of 1.37. STRL earns a higher WallStSmart Score of 69/100 (B-).

SBUX

Buy

51

out of 100

Grade: C-

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

STRL

Strong Buy

69

out of 100

Grade: B-

Growth: 9.3Profit: 8.0Value: 4.3Quality: 7.0
Piotroski: 4/9Altman Z: 2.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SBUXUndervalued (+22.1%)

Margin of Safety

+22.1%

Fair Value

$127.23

Current Price

$95.29

$31.94 discount

UndervaluedFair: $127.23Overvalued

Intrinsic value data unavailable for STRL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

STRL4 strengths · Avg: 9.5/10
Revenue GrowthGrowth
91.6%10/10

Revenue surging 91.6% year-over-year

EPS GrowthGrowth
141.4%10/10

Earnings expanding 141.4% YoY

Return on EquityProfitability
29.1%9/10

Every $100 of equity generates 29 in profit

Debt/EquityHealth
0.299/10

Conservative balance sheet, low leverage

Areas to Watch

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

STRL2 concerns · Avg: 2.0/10
P/E RatioValuation
76.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
24.4x2/10

Trading at 24.4x book value

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : STRL

The strongest argument for STRL centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 91.6% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.

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.

Bear Case : STRL

The primary concerns for STRL are P/E Ratio, Price/Book. A P/E of 76.9x leaves little room for execution misses.

Key Dynamics to Monitor

SBUX profiles as a value stock while STRL is a growth play — different risk/reward profiles.

STRL carries more volatility with a beta of 1.82 — expect wider price swings.

STRL is growing revenue faster at 91.6% — sustainability is the question.

STRL generates stronger free cash flow (146M), providing more financial flexibility.

Bottom Line

STRL scores higher overall (69/100 vs 51/100) and 91.6% revenue growth. SBUX offers better value entry with a 22.1% 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.

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.

Sterling Construction Company Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.

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