Analyzing Sportradar Group (NASDAQ:SRAD) and Starbucks (NASDAQ:SBUX)

Starbucks (NASDAQ:SBUX) and Sportradar Group (NASDAQ:SRAD) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Starbucks and Sportradar Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starbucks	4	15	21	0	2.42
Sportradar Group	0	9	9	1	2.58

Starbucks presently has a consensus price target of $108.89, suggesting a potential upside of 3.30%. Sportradar Group has a consensus price target of $17.97, suggesting a potential upside of 32.71%. Given Sportradar Group’s stronger consensus rating and higher possible upside, analysts plainly believe Sportradar Group is more favorable than Starbucks.

Risk and Volatility

Starbucks has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Sportradar Group has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Profitability

This table compares Starbucks and Sportradar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Starbucks	6.66%	-38.61%	10.40%
Sportradar Group	1.47%	2.57%	0.80%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Starbucks	$37.91 billion	3.17	$2.53 billion	$2.21	47.70
Sportradar Group	$1.46 billion	2.78	$113.50 million	$0.08	169.25

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

Insider & Institutional Ownership

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

Summary

Starbucks beats Sportradar Group on 9 of the 15 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 Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.