Pinstripes (NYSE:PNST) versus Starbucks (NASDAQ:SBUX) Financial Analysis

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

Profitability

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

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

Valuation and Earnings

This table compares Pinstripes and Starbucks’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinstripes	$118.72 million	0.76	-$6.79 million	N/A	N/A
Starbucks	$36.53 billion	2.27	$4.12 billion	$3.63	20.20

Starbucks has higher revenue and earnings than Pinstripes.

Analyst Ratings

This is a summary of recent recommendations and price targets for Pinstripes and Starbucks, as provided by MarketBeat.

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

Pinstripes presently has a consensus target price of $6.00, suggesting a potential upside of 165.49%. Starbucks has a consensus target price of $91.71, suggesting a potential upside of 25.08%. Given Pinstripes’ stronger consensus rating and higher possible upside, research analysts clearly believe Pinstripes is more favorable than Starbucks.

Insider & Institutional Ownership

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

Volatility & Risk

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

Summary

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

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.

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.