Starbucks Corporation (SBUX) vs. Cracker Barrel Old Country Store (CBRL) Head to Head Analysis

Starbucks Corporation (NASDAQ: SBUX) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both mid-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares Starbucks Corporation and Cracker Barrel Old Country Store’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Starbucks Corporation $22.40 billion 3.61 $5.14 billion $1.97 28.41
Cracker Barrel Old Country Store $2.93 billion 1.23 $399.48 million $8.38 17.90

Starbucks Corporation has higher revenue and earnings than Cracker Barrel Old Country Store. Cracker Barrel Old Country Store is trading at a lower price-to-earnings ratio than Starbucks Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Starbucks Corporation and Cracker Barrel Old Country Store’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starbucks Corporation 12.93% 52.82% 21.42%
Cracker Barrel Old Country Store 6.90% 35.49% 13.26%

Dividends

Starbucks Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.2%. Starbucks Corporation pays out 50.8% of its earnings in the form of a dividend. Cracker Barrel Old Country Store pays out 57.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Starbucks Corporation has raised its dividend for 7 consecutive years.

Institutional & Insider Ownership

70.8% of Starbucks Corporation shares are held by institutional investors. Comparatively, 85.6% of Cracker Barrel Old Country Store shares are held by institutional investors. 3.4% of Starbucks Corporation shares are held by insiders. Comparatively, 0.9% of Cracker Barrel Old Country Store shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Starbucks Corporation and Cracker Barrel Old Country Store, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starbucks Corporation 0 11 18 1 2.67
Cracker Barrel Old Country Store 1 7 0 0 1.88

Starbucks Corporation currently has a consensus price target of $64.03, indicating a potential upside of 14.40%. Cracker Barrel Old Country Store has a consensus price target of $161.63, indicating a potential upside of 7.75%. Given Starbucks Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Starbucks Corporation is more favorable than Cracker Barrel Old Country Store.

Volatility & Risk

Starbucks Corporation has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Summary

Starbucks Corporation beats Cracker Barrel Old Country Store on 15 of the 18 factors compared between the two stocks.

Starbucks Corporation Company Profile

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company’s Americas, CAP, and EMEA segments include both company-operated and licensed stores. Its Channel Development segment includes roasted whole bean and ground coffees, Tazo teas, Starbucks- and Tazo-branded single-serve products, a range of ready-to-drink beverages, such as Frappuccino, Starbucks Doubleshot and Starbucks Refreshers beverages and other branded products sold across the world through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and the United States foodservice accounts.

Cracker Barrel Old Country Store Company Profile

Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods. Its restaurants offer home-style country cooking featuring of its own recipes. Its restaurants serve breakfast, lunch and dinner. Its breakfast items include juices, eggs, pancakes, grits, and a range of biscuit specialties. Its lunch and dinner items include country ham, chicken and dumplings, chicken fried chicken, meatloaf, fresh side items and specialty items, such as pinto beans and turnip greens.

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