Starbucks Corporation (SBUX)vsWest Pharmaceutical Services Inc (WST)
SBUX
Starbucks Corporation
$92.70
+0.78%
CONSUMER CYCLICAL · Cap: $104.79B
WST
West Pharmaceutical Services Inc
$247.02
+0.71%
HEALTHCARE · Cap: $17.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Starbucks Corporation generates 1126% more annual revenue ($37.70B vs $3.07B). WST leads profitability with a 16.1% profit margin vs 3.6%. SBUX appears more attractively valued with a PEG of 1.53. WST earns a higher WallStSmart Score of 55/100 (C-).
SBUX
Hold39
out of 100
Grade: F
WST
Buy55
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
-256.8%
Fair Value
$68.99
Current Price
$247.02
$178.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Generating 1.3B in free cash flow
Safe zone — low bankruptcy risk
Strong operational efficiency at 21.6%
Areas to Watch
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
3.6% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
2.1% earnings growth
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 : WST
The strongest argument for WST centers on Altman Z-Score, Operating Margin. Profitability is solid with margins at 16.1% and operating margin at 21.6%.
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 : WST
The primary concerns for WST are P/E Ratio, EPS Growth, PEG Ratio.
Key Dynamics to Monitor
SBUX profiles as a value stock while WST is a mature play — different risk/reward profiles.
WST carries more volatility with a beta of 1.18 — expect wider price swings.
WST is growing revenue faster at 7.5% — sustainability is the question.
SBUX generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
WST scores higher overall (55/100 vs 39/100), backed by strong 16.1% margins. 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.
West Pharmaceutical Services Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.
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