KO vs SBUX: Which Is the Better Buy?

Side-by-side comparison of The Coca-Cola Company and Starbucks Corporation โ€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-09-18.
The Coca-Cola Company ยท Consumer Defensive
$88.71
+15.5% upside to fair value
Med Conviction Grade C High Quality
VS
Starbucks Corporation ยท Consumer Cyclical
$96.67
+12.3% upside to fair value
Med Conviction Grade C
QuantHub Verdict
KO has more upside to fair value (+15.5%). These are model outputs โ€” not personalized investment advice. See all research โ†’
Valuation & Fundamentals
Metric KO SBUX
Current Price $88.71 $96.67
Fair Value Estimate $102.44 $108.52
Upside to Fair Value +15.5% +12.3%
Market Cap $381.7B $110.2B
Forward P/E โ€” โ€”
EV / EBITDA 20.8x 22.0x
Price / Sales 7.6x 2.9x
Price / FCF 26.7x 30.4x
Revenue Growth YoY +6.7% -1.4%
Gross Margin 61.9% 31.7%
Operating Margin 29.6% 9.4%
Return on Equity 43.0% -24.3%
Dividend Yield 2.37% 2.57%
FCF Yield 3.75% 3.29%
Analyst Consensus Strong Buy Buy
Investment Thesis
KO โ€” The Coca-Cola Company
The Coca-Cola Company is a global non-alcoholic beverage concentrate, brand-management and bottling-system business with products sold in more than 200 countries and territories, supported by powerful trademarks, 2.2 billion daily servings and an entrenched distribution network. Business quality is high: TTM gross, operating and net margins are 61.9%, 29.6% and 28.6%, respectively, ROE is 43.0%, โ€ฆ
SBUX โ€” Starbucks Corporation
Starbucks is the world's largest specialty coffee retailer, operating company-owned and licensed coffeehouses across North America, International, and Channel Development segments, with a brand that has historically supported premium pricing and global scale. The business quality is currently strained: revenue declined 1.4% year over year in the most recent quarter, TTM operating margin is 9.4%, โ€ฆ
Accumulation Zones
Metric KO SBUX
Zone Low $76.83 $81.39
Zone High $87.07 $92.24
In Buy Zone? No No
โ† KO Research    SBUX Research โ†’    All Research