Head-To-Head Survey: Starbucks (NASDAQ:SBUX) and Bojangles (BOJA)

Starbucks (NASDAQ: SBUX) and Bojangles (NASDAQ:BOJA) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Profitability

This table compares Starbucks and Bojangles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Starbucks 19.28% 56.35% 20.73%
Bojangles 6.13% 15.11% 5.99%

Valuation and Earnings

This table compares Starbucks and Bojangles’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Starbucks $22.39 billion 3.52 $2.88 billion $2.98 18.79
Bojangles $531.88 million 0.84 $37.71 million $0.86 14.07

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Starbucks and Bojangles, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Starbucks 0 10 19 0 2.66
Bojangles 0 9 1 0 2.10

Starbucks presently has a consensus price target of $64.75, indicating a potential upside of 15.65%. Bojangles has a consensus price target of $16.75, indicating a potential upside of 38.43%. Given Bojangles’ higher probable upside, analysts plainly believe Bojangles is more favorable than Starbucks.

Insider and Institutional Ownership

71.9% of Starbucks shares are owned by institutional investors. Comparatively, 91.1% of Bojangles shares are owned by institutional investors. 3.5% of Starbucks shares are owned by insiders. Comparatively, 55.3% of Bojangles shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Starbucks pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. Bojangles does not pay a dividend. Starbucks pays out 40.3% of its earnings in the form of a dividend.

Summary

Starbucks beats Bojangles on 11 of the 15 factors compared between the two stocks.

Starbucks Company Profile

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company’s Americas, CAP, and EMEA segments include both company-operated and licensed stores. Its Channel Development segment includes roasted whole bean and ground coffees, Tazo teas, Starbucks- and Tazo-branded single-serve products, a range of ready-to-drink beverages, such as Frappuccino, Starbucks Doubleshot and Starbucks Refreshers beverages and other branded products sold across the world through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores and the United States foodservice accounts.

Bojangles Company Profile

Bojangles’, Inc. is a restaurant operator and franchisor. The Company offers food made from its Southern recipes. The Company’s menu includes its made-from-scratch, buttermilk biscuits baked fresh every 20 minutes; its fresh, never-frozen bone-in fried chicken; its fixin’s; its Bo-Smart menu featuring items, such as salads, grilled chicken sandwiches, roasted chicken bites and fat-free green beans; its freshly baked and delicious sweets menu, and its Legendary Iced Tea. The Company’s food is offered a la carte and in combos. The Company’s chicken, fixin’s, biscuits and Legendary Iced Tea may also be ordered in boxes or family meals, and larger combinations may be offered as tailgate specials or may be packaged in its Big Bo Box. The Company offers Southern style mac ‘n cheese made from two cheeses; fat-free green beans; cole slaw, and mashed potatoes with gravy. Its menu also features salads, sandwiches and its whole meat Roasted Chicken Bites.

Receive News & Ratings for Starbucks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Starbucks and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply