Starbucks Corporation (SBUX)vsTarget Corporation (TGT)
SBUX
Starbucks Corporation
$104.93
+0.64%
CONSUMER CYCLICAL · Cap: $118.83B
TGT
Target Corporation
$125.25
-0.50%
CONSUMER DEFENSIVE · Cap: $56.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 172% more annual revenue ($104.78B vs $38.47B). SBUX leads profitability with a 3.9% profit margin vs 3.5%. SBUX appears more attractively valued with a PEG of 1.79. SBUX earns a higher WallStSmart Score of 49/100 (D+).
SBUX
Hold49
out of 100
Grade: D+
TGT
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.5%
Fair Value
$134.88
Current Price
$104.93
$29.95 discount
Margin of Safety
+33.1%
Fair Value
$171.45
Current Price
$125.25
$46.20 discount
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
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
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
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, EPS Growth.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
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 : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT 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.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SBUX scores higher overall (49/100 vs 48/100). TGT offers better value entry with a 33.1% margin of safety. Both earn "Hold" 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.
Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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