Comparing Mitchells & Butlers (OTCMKTS:MBPFF) & Starbucks (NASDAQ:SBUX)

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

Earnings and Valuation

This table compares Mitchells & Butlers and Starbucks”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitchells & Butlers	$3.54 billion	0.58	$231.16 million	N/A	N/A
Starbucks	$37.18 billion	3.09	$1.86 billion	$1.21	83.28

Starbucks has higher revenue and earnings than Mitchells & Butlers.

Profitability

This table compares Mitchells & Butlers and Starbucks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitchells & Butlers	N/A	N/A	N/A
Starbucks	3.63%	-28.66%	7.03%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mitchells & Butlers and Starbucks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitchells & Butlers	0	0	0	0	0.00
Starbucks	2	11	17	0	2.50

Starbucks has a consensus price target of $104.22, indicating a potential upside of 3.43%. Given Starbucks’ stronger consensus rating and higher possible upside, analysts plainly believe Starbucks is more favorable than Mitchells & Butlers.

Insider & Institutional Ownership

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

Volatility and Risk

Mitchells & Butlers has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Summary

Starbucks beats Mitchells & Butlers on 11 of the 12 factors compared between the two stocks.

About Mitchells & Butlers

Mitchells & Butlers plc engages in the management of pubs, bars, and restaurants in the United Kingdom and Germany. The company operates its pubs and restaurants under the Alex, All Bar One, Browns, Castle, EGO, Ember Inns, Harvester, High Street, Innkeeper's Lodge, Miller & Carter, Nicholson's, O'Neill's, Premium Country Pubs, Sizzling Pubs, Suburban, Stonehouse Pizza & Carvery, Toby Carvery, and Vintage Inns brands and formats. It also engages in the leisure retailing; property leasing, property management, and development; and financing activities, as well as operates as a healthcare trustee. In addition, the company owns various trademarks. The company was founded in 1898 and is headquartered in Birmingham, the United Kingdom.

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.