Yum! Brands (YUM) Competitors

Starbucks (NASDAQ:SBUX) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, community ranking, earnings, dividends, media sentiment, valuation, profitability and institutional ownership.

Which has higher valuation & earnings, SBUX or YUM?

Starbucks has higher revenue and earnings than Yum! Brands. Yum! Brands is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Starbucks	$36.18B	2.98	$3.76B	$3.31	28.74
Yum! Brands	$7.08B	4.94	$1.60B	$5.35	23.42

Which has more volatility and risk, SBUX or YUM?

Starbucks has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Does the media refer more to SBUX or YUM?

In the previous week, Starbucks had 63 more articles in the media than Yum! Brands. MarketBeat recorded 83 mentions for Starbucks and 20 mentions for Yum! Brands. Starbucks' average media sentiment score of 0.65 beat Yum! Brands' score of 0.53 indicating that Starbucks is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Starbucks	38 Very Positive mention(s)	14 Positive mention(s)	21 Neutral mention(s)	8 Negative mention(s)	2 Very Negative mention(s)	Positive
Yum! Brands	6 Very Positive mention(s)	0 Positive mention(s)	13 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate SBUX or YUM?

Starbucks presently has a consensus target price of $103.92, indicating a potential upside of 9.24%. Yum! Brands has a consensus target price of $146.24, indicating a potential upside of 16.70%. Given Yum! Brands' higher probable upside, analysts plainly believe Yum! Brands is more favorable than Starbucks.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starbucks	3 Sell rating(s)	7 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.57
Yum! Brands	0 Sell rating(s)	11 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.35

Is SBUX or YUM more profitable?

Yum! Brands has a net margin of 21.13% compared to Starbucks' net margin of 10.40%. Yum! Brands' return on equity of -18.93% beat Starbucks' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Starbucks	10.40%	-46.39%	12.54%
Yum! Brands	21.13%	-18.93%	23.12%

Does the MarketBeat Community prefer SBUX or YUM?

Starbucks received 1031 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 76.40% of users gave Starbucks an outperform vote while only 64.90% of users gave Yum! Brands an outperform vote.

Company	Underperform	Outperform
Starbucks	Outperform Votes 2107 76.40%	Underperform Votes 651 23.60%
Yum! Brands	Outperform Votes 1076 64.90%	Underperform Votes 582 35.10%

Do insiders and institutionals hold more shares of SBUX or YUM?

72.3% of Starbucks shares are owned by institutional investors. Comparatively, 82.4% of Yum! Brands shares are owned by institutional investors. 2.0% of Starbucks shares are owned by company insiders. Comparatively, 0.3% of Yum! Brands 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.

Is SBUX or YUM a better dividend stock?

Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.6%. Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.1%. Starbucks pays out 73.7% of its earnings in the form of a dividend. Yum! Brands pays out 50.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Starbucks has increased its dividend for 15 consecutive years. Starbucks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Starbucks beats Yum! Brands on 13 of the 22 factors compared between the two stocks.