Analyzing Viking (NYSE:VIK) and Starbucks (NASDAQ:SBUX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viking	19.33%	117.98%	10.80%
Starbucks	5.17%	-34.10%	9.03%

Earnings & Valuation

This table compares Viking and Starbucks”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viking	$6.50 billion	6.30	$1.15 billion	$3.01	30.51
Starbucks	$38.34 billion	3.17	$1.86 billion	$1.74	61.23

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

Volatility and Risk

Viking has a beta of 1.5, meaning that its share price is 50% 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.

Insider & Institutional Ownership

98.8% of Viking shares are owned by institutional investors. Comparatively, 72.3% of Starbucks shares are owned by institutional investors. 0.0% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Viking and Starbucks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viking	1	3	14	1	2.79
Starbucks	4	11	19	0	2.44

Viking presently has a consensus target price of $107.11, suggesting a potential upside of 16.62%. Starbucks has a consensus target price of $110.30, suggesting a potential upside of 3.53%. Given Viking’s stronger consensus rating and higher probable upside, equities analysts clearly believe Viking is more favorable than Starbucks.

Summary

Viking beats Starbucks on 10 of the 15 factors compared between the two stocks.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.

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.