Starbucks (NASDAQ: SBUX) and Cannae (NYSE:CNNE) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
72.2% of Starbucks shares are held by institutional investors. Comparatively, 79.8% of Cannae shares are held by institutional investors. 3.5% of Starbucks shares are held by insiders. Comparatively, 4.9% of Cannae shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Starbucks has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Cannae has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Starbucks and Cannae, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Starbucks currently has a consensus price target of $64.29, suggesting a potential upside of 12.75%. Given Starbucks’ higher probable upside, equities research analysts clearly believe Starbucks is more favorable than Cannae.
This table compares Starbucks and Cannae’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Starbucks and Cannae’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Starbucks||$22.39 billion||3.51||$2.88 billion||$2.06||27.68|
|Cannae||$1.17 billion||1.23||$108.80 million||$1.54||13.25|
Starbucks has higher revenue and earnings than Cannae. Cannae is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Starbucks pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. Cannae does not pay a dividend. Starbucks pays out 58.3% of its earnings in the form of a dividend.
Starbucks beats Cannae on 12 of the 15 factors compared between the two stocks.
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, and food and snacks; 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. It offers its products under the Starbucks, Teavana, Tazo, Seattle's Best Coffee, Evolution Fresh, La Boulange, Ethos, Frappuccino, Starbucks Doubleshot, Starbucks Refreshers, premium Tazo, and Starbucks VIA brand names. As of April 26, 2018, the company operated 28,209 stores. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
Cannae Holdings, Inc is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. is based in Las Vegas, Nevada.
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