Starbucks Corporation (SBUX)vsWarner Bros Discovery Inc (WBD)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
WBD
Warner Bros Discovery Inc
$27.22
-0.22%
COMMUNICATION SERVICES · Cap: $67.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 1% more annual revenue ($37.70B vs $37.30B). SBUX leads profitability with a 3.6% profit margin vs 1.9%. SBUX appears more attractively valued with a PEG of 1.53. WBD earns a higher WallStSmart Score of 51/100 (C-).
SBUX
Hold39
out of 100
Grade: F
WBD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1135.9%
Fair Value
$8.02
Current Price
$92.70
$84.68 premium
Margin of Safety
-106.3%
Fair Value
$13.57
Current Price
$27.22
$13.65 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
2.3% earnings growth
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : SBUX
The strongest argument for SBUX centers on Market Cap, Free Cash Flow.
Bull Case : WBD
The strongest argument for WBD centers on Market Cap, Price/Book, Free Cash Flow.
Bear Case : SBUX
The primary concerns for SBUX are PEG Ratio, Return on Equity, Profit Margin. A P/E of 78.0x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.
Bear Case : WBD
The primary concerns for WBD are EPS Growth, Return on Equity, Profit Margin. A P/E of 94.1x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
WBD carries more volatility with a beta of 1.68 — expect wider price swings.
SBUX is growing revenue faster at 5.5% — sustainability is the question.
WBD generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WBD scores higher overall (51/100 vs 39/100). 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?