Contrasting Starbucks (NASDAQ:SBUX) & Pinstripes (NYSE:PNST)

Pinstripes (NYSE:PNST) and Starbucks (NASDAQ:SBUX) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Earnings & Valuation

This table compares Pinstripes and Starbucks’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinstripes	$118.72 million	0.78	-$6.79 million	N/A	N/A
Starbucks	$35.98 billion	2.33	$4.12 billion	$3.63	20.40

Starbucks has higher revenue and earnings than Pinstripes.

Institutional and Insider Ownership

56.8% of Pinstripes shares are owned by institutional investors. Comparatively, 72.3% of Starbucks shares are owned by institutional investors. 22.8% of Pinstripes shares are owned by insiders. Comparatively, 2.0% of Starbucks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Pinstripes and Starbucks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinstripes	0	0	3	0	3.00
Starbucks	0	16	9	0	2.36

Pinstripes currently has a consensus price target of $6.00, indicating a potential upside of 160.87%. Starbucks has a consensus price target of $91.71, indicating a potential upside of 23.85%. Given Pinstripes’ stronger consensus rating and higher probable upside, analysts clearly believe Pinstripes is more favorable than Starbucks.

Profitability

This table compares Pinstripes and Starbucks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinstripes	N/A	N/A	-8.99%
Starbucks	11.38%	-49.91%	14.27%

Risk & Volatility

Pinstripes has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Summary

Starbucks beats Pinstripes on 8 of the 12 factors compared between the two stocks.

About Pinstripes

Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle's Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.