Financial Comparison: Starbucks (NASDAQ:SBUX) vs. Chipotle Mexican Grill (NYSE:CMG)

Starbucks (NASDAQ:SBUX – Get Free Report) and Chipotle Mexican Grill (NYSE:CMG – Get Free Report) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Volatility and Risk

Starbucks has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Starbucks and Chipotle Mexican Grill, as reported by MarketBeat.com.

Starbucks presently has a consensus target price of $110.14, indicating a potential upside of 6.89%. Chipotle Mexican Grill has a consensus target price of $43.56, indicating a potential upside of 55.89%. Given Chipotle Mexican Grill’s stronger consensus rating and higher possible upside, analysts clearly believe Chipotle Mexican Grill is more favorable than Starbucks.

Insider and Institutional Ownership

72.3% of Starbucks shares are owned by institutional investors. Comparatively, 91.3% of Chipotle Mexican Grill shares are owned by institutional investors. 0.0% of Starbucks shares are owned by insiders. Comparatively, 0.4% of Chipotle Mexican Grill shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Starbucks and Chipotle Mexican Grill’s net margins, return on equity and return on assets.

Earnings & Valuation

This table compares Starbucks and Chipotle Mexican Grill”s gross revenue, earnings per share (EPS) and valuation.

Starbucks has higher revenue and earnings than Chipotle Mexican Grill. Chipotle Mexican Grill 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 Chipotle Mexican Grill on 6 of the 11 factors compared between the two stocks.

About Starbucks

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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 Chipotle Mexican Grill

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Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.