Reviewing Pinstripes (NYSE:PNST) & Starbucks (NASDAQ:SBUX)

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

Insider & Institutional Ownership

56.8% of Pinstripes shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 22.8% of Pinstripes shares are held by insiders. Comparatively, 2.0% of Starbucks shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Pinstripes has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares Pinstripes and Starbucks’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinstripes	$118.72 million	0.69	-$6.79 million	N/A	N/A
Starbucks	$35.98 billion	2.37	$4.12 billion	$3.63	20.69

Starbucks has higher revenue and earnings than Pinstripes.

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	11.16%	-49.38%	13.79%

Analyst Recommendations

This is a summary of recent ratings 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 price target of $6.00, indicating a potential upside of 195.57%. Starbucks has a consensus price target of $90.88, indicating a potential upside of 21.02%. Given Pinstripes’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Pinstripes is more favorable than Starbucks.

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.