Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) and Starbucks (NASDAQ:SBUX – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.
Risk & Volatility
Dave & Buster’s Entertainment has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Starbucks has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for Dave & Buster’s Entertainment and Starbucks, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave & Buster’s Entertainment | 2 | 3 | 3 | 0 | 2.13 |
| Starbucks | 2 | 11 | 20 | 0 | 2.55 |
Profitability
This table compares Dave & Buster’s Entertainment and Starbucks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dave & Buster’s Entertainment | -2.32% | -7.93% | -0.26% |
| Starbucks | 3.89% | -29.24% | 7.42% |
Insider & Institutional Ownership
91.5% of Dave & Buster’s Entertainment shares are owned by institutional investors. Comparatively, 72.3% of Starbucks shares are owned by institutional investors. 1.7% of Dave & Buster’s Entertainment shares are owned by company insiders. Comparatively, 0.0% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Dave & Buster’s Entertainment and Starbucks”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dave & Buster’s Entertainment | $2.10 billion | 0.17 | -$48.70 million | ($1.43) | -7.27 |
| Starbucks | $37.18 billion | 3.27 | $1.86 billion | $1.32 | 80.76 |
Starbucks has higher revenue and earnings than Dave & Buster’s Entertainment. Dave & Buster’s Entertainment is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.
Summary
Starbucks beats Dave & Buster’s Entertainment on 9 of the 14 factors compared between the two stocks.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
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.
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