Reviewing Starbucks (NASDAQ:SBUX) and Chanson International (NASDAQ:CHSN)

Chanson International (NASDAQ:CHSN) and Starbucks (NASDAQ:SBUX) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chanson International	N/A	N/A	N/A
Starbucks	5.17%	-34.10%	9.03%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Chanson International and Starbucks, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chanson International	1	0	0	0	1.00
Starbucks	4	11	19	0	2.44

Starbucks has a consensus price target of $111.96, suggesting a potential upside of 6.18%. Given Starbucks’ stronger consensus rating and higher possible upside, analysts plainly believe Starbucks is more favorable than Chanson International.

Earnings & Valuation

This table compares Chanson International and Starbucks”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chanson International	$18.27 million	0.02	$190,000.00	N/A	N/A
Starbucks	$37.18 billion	3.23	$1.86 billion	$1.74	60.60

Starbucks has higher revenue and earnings than Chanson International.

Volatility and Risk

Chanson International has a beta of -4.36, indicating that its share price is 536% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

2.8% of Chanson International shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 0.0% of Starbucks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Starbucks beats Chanson International on 11 of the 12 factors compared between the two stocks.

About Chanson International

Chanson International Holding manufactures and sells a range of bakery products, seasonal products, and beverage products for individual and corporate customers. It offers packaged bakery products, such as cakes, bread, sweets, and snacks; birthday cakes; made-in-store pastries; mooncakes and zongzi products; and other products, including sandwiches, salads, toasts, croissants, soups, and desserts, as well as beverages and juice products. The company sells its products through a chain of bakeries, as well as digital platforms and third-party online food ordering platforms. It also offers eat-in services in its stores. The company sells its bakery and other products under the George Chanson, Patisserie Chanson, and Chanson brand names. It operates in Xinjiang in the People's Republic of China; and New York City, the United States. The company was formerly known as formerly known as RON Holding Limited and changed its name to Chanson International Holding in December 2020. The company was incorporated in 2019 and is headquartered in Urumqi, China. Chanson International Holding operates as a subsidiary of Danton Global Limited.

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.