Pinstripes (NYSE:PNST) versus Starbucks (NASDAQ:SBUX) Critical Survey

Starbucks (NASDAQ:SBUX) and Pinstripes (NYSE:PNST) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Insider and Institutional Ownership

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

Volatility and Risk

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

Analyst Ratings

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

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

Starbucks currently has a consensus price target of $92.75, suggesting a potential upside of 17.01%. Pinstripes has a consensus price target of $6.00, suggesting a potential upside of 164.32%. Given Pinstripes’ stronger consensus rating and higher possible upside, analysts clearly believe Pinstripes is more favorable than Starbucks.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Starbucks	$35.98 billion	2.50	$4.12 billion	$3.63	21.84
Pinstripes	$118.72 million	0.77	-$6.79 million	N/A	N/A

Starbucks has higher revenue and earnings than Pinstripes.

Profitability

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

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

Summary

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

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.

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.