Reviewing Starbucks (NASDAQ:SBUX) and Latitude 360 (OTCMKTS:LATX)

Starbucks (NASDAQ:SBUX) and Latitude 360 (OTCMKTS:LATX) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Earnings and Valuation

This table compares Starbucks and Latitude 360″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Starbucks	$37.18 billion	2.61	$3.76 billion	$1.64	51.95
Latitude 360	N/A	N/A	N/A	N/A	N/A

Starbucks has higher revenue and earnings than Latitude 360.

Institutional & Insider Ownership

72.3% of Starbucks shares are held by institutional investors. 0.1% of Starbucks shares are held by insiders. Comparatively, 24.5% of Latitude 360 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Starbucks and Latitude 360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Starbucks	4.99%	-31.84%	7.46%
Latitude 360	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Starbucks and Latitude 360, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starbucks	2	11	15	1	2.52
Latitude 360	0	0	0	0	0.00

Starbucks currently has a consensus target price of $101.44, suggesting a potential upside of 19.06%. Given Starbucks’ stronger consensus rating and higher possible upside, analysts clearly believe Starbucks is more favorable than Latitude 360.

Summary

Starbucks beats Latitude 360 on 8 of the 10 factors compared between the two stocks.

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.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.