Yum! Brands (YUM) Competitors

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

Which has better earnings & valuation, YUM or SBUX?

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
Yum! Brands	$7.08B	5.24	$1.60B	$5.35	24.84
Starbucks	$36.18B	3.08	$3.76B	$3.31	29.69

Do institutionals & insiders believe in YUM or SBUX?

82.4% of Yum! Brands shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 0.3% of Yum! Brands shares are held by insiders. Comparatively, 2.0% of Starbucks shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Which has more volatility & risk, YUM or SBUX?

Yum! Brands has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Is YUM or SBUX 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
Yum! Brands	21.13%	-18.93%	23.12%
Starbucks	10.40%	-46.39%	12.54%

Does the media favor YUM or SBUX?

In the previous week, Starbucks had 31 more articles in the media than Yum! Brands. MarketBeat recorded 54 mentions for Starbucks and 23 mentions for Yum! Brands. Starbucks' average media sentiment score of 0.93 beat Yum! Brands' score of 0.59 indicating that Starbucks is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Yum! Brands	11 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
Starbucks	33 Very Positive mention(s)	5 Positive mention(s)	12 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Does the MarketBeat Community prefer YUM or SBUX?

Starbucks received 1032 more outperform votes than Yum! Brands when rated by MarketBeat users. Likewise, 76.39% of users gave Starbucks an outperform vote while only 64.89% of users gave Yum! Brands an outperform vote.

Company	Underperform	Outperform
Yum! Brands	Outperform Votes 1074 64.89%	Underperform Votes 581 35.11%
Starbucks	Outperform Votes 2106 76.39%	Underperform Votes 651 23.61%

Is YUM or SBUX a better dividend stock?

Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. Starbucks pays an annual dividend of $2.44 per share and has a dividend yield of 2.5%. Yum! Brands pays out 50.1% of its earnings in the form of a dividend. Starbucks pays out 73.7% 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.

Do analysts rate YUM or SBUX?

Yum! Brands currently has a consensus target price of $145.94, indicating a potential upside of 9.83%. Starbucks has a consensus target price of $102.81, indicating a potential upside of 4.63%. Given Yum! Brands' higher probable upside, research analysts plainly believe Yum! Brands is more favorable than Starbucks.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yum! Brands	0 Sell rating(s)	12 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.33
Starbucks	3 Sell rating(s)	8 Hold rating(s)	17 Buy rating(s)	1 Strong Buy rating(s)	2.55

Summary

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