Seek Returns logo

IP vs. SBUX: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at IP and SBUX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolIPSBUX
Company NameInternational Paper CompanyStarbucks Corporation
CountryUnited StatesUnited States
GICS SectorMaterialsConsumer Discretionary
GICS IndustryContainers & PackagingHotels, Restaurants & Leisure
Market Capitalization24.82 billion USD101.75 billion USD
ExchangeNYSENasdaqGS
Listing DateJanuary 2, 1962June 26, 1992
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of IP and SBUX by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

IP vs. SBUX: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolIPSBUX
5-Day Price Return-1.57%-3.81%
13-Week Price Return-6.89%5.79%
26-Week Price Return-15.21%-20.79%
52-Week Price Return-1.30%-3.02%
Month-to-Date Return0.58%0.39%
Year-to-Date Return-12.65%-1.91%
10-Day Avg. Volume3.60M8.15M
3-Month Avg. Volume4.33M10.26M
3-Month Volatility35.68%27.77%
Beta1.121.02

Profitability

Return on Equity (TTM)

IP

-0.20%

Containers & Packaging Industry

Max
41.66%
Q3
20.76%
Median
14.35%
Q1
6.55%
Min
3.64%

IP has a negative Return on Equity of -0.20%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

SBUX

115.68%

Hotels, Restaurants & Leisure Industry

Max
83.01%
Q3
39.51%
Median
17.38%
Q1
5.32%
Min
-45.92%

SBUX’s Return on Equity of 115.68% is exceptionally high, placing it well beyond the typical range for the Hotels, Restaurants & Leisure industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

IP vs. SBUX: A comparison of their Return on Equity (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Net Profit Margin (TTM)

IP

-0.12%

Containers & Packaging Industry

Max
11.61%
Q3
8.17%
Median
4.91%
Q1
4.20%
Min
0.08%

IP has a negative Net Profit Margin of -0.12%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

SBUX

7.18%

Hotels, Restaurants & Leisure Industry

Max
26.45%
Q3
14.67%
Median
8.69%
Q1
3.34%
Min
-11.30%

SBUX’s Net Profit Margin of 7.18% is aligned with the median group of its peers in the Hotels, Restaurants & Leisure industry. This indicates its ability to convert revenue into profit is typical for the sector.

IP vs. SBUX: A comparison of their Net Profit Margin (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Operating Profit Margin (TTM)

IP

-0.07%

Containers & Packaging Industry

Max
22.03%
Q3
13.17%
Median
8.87%
Q1
6.86%
Min
0.07%

IP has a negative Operating Profit Margin of -0.07%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

SBUX

10.81%

Hotels, Restaurants & Leisure Industry

Max
38.76%
Q3
21.15%
Median
14.20%
Q1
6.43%
Min
-14.56%

SBUX’s Operating Profit Margin of 10.81% is around the midpoint for the Hotels, Restaurants & Leisure industry, indicating that its efficiency in managing core business operations is typical for the sector.

IP vs. SBUX: A comparison of their Operating Profit Margin (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Profitability at a Glance

SymbolIPSBUX
Return on Equity (TTM)-0.20%115.68%
Return on Assets (TTM)-0.08%8.19%
Net Profit Margin (TTM)-0.12%7.18%
Operating Profit Margin (TTM)-0.07%10.81%
Gross Profit Margin (TTM)28.30%23.74%

Financial Strength

Current Ratio (MRQ)

IP

1.33

Containers & Packaging Industry

Max
2.13
Q3
1.57
Median
1.27
Q1
1.13
Min
0.58

IP’s Current Ratio of 1.33 aligns with the median group of the Containers & Packaging industry, indicating that its short-term liquidity is in line with its sector peers.

SBUX

0.76

Hotels, Restaurants & Leisure Industry

Max
2.68
Q3
1.62
Median
1.11
Q1
0.74
Min
0.19

SBUX’s Current Ratio of 0.76 aligns with the median group of the Hotels, Restaurants & Leisure industry, indicating that its short-term liquidity is in line with its sector peers.

IP vs. SBUX: A comparison of their Current Ratio (MRQ) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Debt-to-Equity Ratio (MRQ)

IP

0.53

Containers & Packaging Industry

Max
4.50
Q3
2.23
Median
1.22
Q1
0.54
Min
0.23

Falling into the lower quartile for the Containers & Packaging industry, IP’s Debt-to-Equity Ratio of 0.53 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

SBUX

8.07

Hotels, Restaurants & Leisure Industry

Max
9.88
Q3
4.54
Median
1.52
Q1
0.27
Min
0.00

SBUX’s leverage is in the upper quartile of the Hotels, Restaurants & Leisure industry, with a Debt-to-Equity Ratio of 8.07. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

IP vs. SBUX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Interest Coverage Ratio (TTM)

IP

1.71

Containers & Packaging Industry

Max
13.16
Q3
8.10
Median
3.61
Q1
2.94
Min
1.06

In the lower quartile for the Containers & Packaging industry, IP’s Interest Coverage Ratio of 1.71 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

SBUX

37.01

Hotels, Restaurants & Leisure Industry

Max
26.88
Q3
11.95
Median
3.87
Q1
1.19
Min
-11.84

With an Interest Coverage Ratio of 37.01, SBUX demonstrates a superior capacity to service its debt, placing it well above the typical range for the Hotels, Restaurants & Leisure industry. This stems from either robust earnings or a conservative debt load.

IP vs. SBUX: A comparison of their Interest Coverage Ratio (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Financial Strength at a Glance

SymbolIPSBUX
Current Ratio (MRQ)1.330.76
Quick Ratio (MRQ)0.960.52
Debt-to-Equity Ratio (MRQ)0.538.07
Interest Coverage Ratio (TTM)1.7137.01

Growth

Revenue Growth

IP vs. SBUX: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

IP vs. SBUX: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

IP

3.25%

Containers & Packaging Industry

Max
7.37%
Q3
4.07%
Median
3.33%
Q1
1.72%
Min
0.00%

IP’s Dividend Yield of 3.25% is consistent with its peers in the Containers & Packaging industry, providing a dividend return that is standard for its sector.

SBUX

2.66%

Hotels, Restaurants & Leisure Industry

Max
5.88%
Q3
2.37%
Median
0.68%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.66%, SBUX offers a more attractive income stream than most of its peers in the Hotels, Restaurants & Leisure industry, signaling a strong commitment to shareholder returns.

IP vs. SBUX: A comparison of their Dividend Yield (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Dividend Payout Ratio (TTM)

IP

180.00%

Containers & Packaging Industry

Max
221.20%
Q3
119.52%
Median
58.05%
Q1
28.91%
Min
0.00%

IP’s Dividend Payout Ratio of 180.00% is in the upper quartile for the Containers & Packaging industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

SBUX

103.48%

Hotels, Restaurants & Leisure Industry

Max
127.31%
Q3
56.79%
Median
19.58%
Q1
0.00%
Min
0.00%

SBUX’s Dividend Payout Ratio of 103.48% is in the upper quartile for the Hotels, Restaurants & Leisure industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

IP vs. SBUX: A comparison of their Dividend Payout Ratio (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Dividend at a Glance

SymbolIPSBUX
Dividend Yield (TTM)3.25%2.66%
Dividend Payout Ratio (TTM)180.00%103.48%

Valuation

Price-to-Earnings Ratio (TTM)

IP

--

Containers & Packaging Industry

Max
35.98
Q3
27.87
Median
16.15
Q1
14.38
Min
8.20

P/E Ratio data for IP is currently unavailable.

SBUX

38.96

Hotels, Restaurants & Leisure Industry

Max
59.44
Q3
33.98
Median
22.25
Q1
15.53
Min
7.61

A P/E Ratio of 38.96 places SBUX in the upper quartile for the Hotels, Restaurants & Leisure industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

IP vs. SBUX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Price-to-Sales Ratio (TTM)

IP

1.14

Containers & Packaging Industry

Max
2.91
Q3
1.67
Median
0.83
Q1
0.64
Min
0.30

IP’s P/S Ratio of 1.14 aligns with the market consensus for the Containers & Packaging industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

SBUX

2.80

Hotels, Restaurants & Leisure Industry

Max
7.74
Q3
3.88
Median
2.05
Q1
1.19
Min
0.17

SBUX’s P/S Ratio of 2.80 aligns with the market consensus for the Hotels, Restaurants & Leisure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

IP vs. SBUX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Price-to-Book Ratio (MRQ)

IP

1.33

Containers & Packaging Industry

Max
5.28
Q3
3.30
Median
2.35
Q1
1.57
Min
0.89

IP’s P/B Ratio of 1.33 is in the lower quartile for the Containers & Packaging industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

SBUX

64.12

Hotels, Restaurants & Leisure Industry

Max
20.90
Q3
9.78
Median
4.29
Q1
2.22
Min
0.47

At 64.12, SBUX’s P/B Ratio is at an extreme premium to the Hotels, Restaurants & Leisure industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

IP vs. SBUX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Containers & Packaging and Hotels, Restaurants & Leisure industry benchmarks.

Valuation at a Glance

SymbolIPSBUX
Price-to-Earnings Ratio (TTM)--38.96
Price-to-Sales Ratio (TTM)1.142.80
Price-to-Book Ratio (MRQ)1.3364.12
Price-to-Free Cash Flow Ratio (TTM)49.6440.21