TXRH vs. WING, YUMC, ARMK, YUM, DPZ, DRI, WEN, EAT, CAKE, and BLMN
Should you be buying Texas Roadhouse stock or one of its competitors? The main competitors of Texas Roadhouse include Wingstop (WING), Yum China (YUMC), Aramark (ARMK), Yum! Brands (YUM), Domino's Pizza (DPZ), Darden Restaurants (DRI), Wendy's (WEN), Brinker International (EAT), Cheesecake Factory (CAKE), and Bloomin' Brands (BLMN).
Wingstop (NASDAQ:WING) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, community ranking, risk, profitability, dividends, media sentiment and valuation.
Wingstop pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Wingstop pays out 31.3% of its earnings in the form of a dividend. Texas Roadhouse pays out 49.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wingstop has raised its dividend for 6 consecutive years and Texas Roadhouse has raised its dividend for 5 consecutive years.
Wingstop has a net margin of 16.75% compared to Wingstop's net margin of 6.94%. Wingstop's return on equity of 28.85% beat Texas Roadhouse's return on equity.
Texas Roadhouse has higher revenue and earnings than Wingstop. Texas Roadhouse is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
94.8% of Texas Roadhouse shares are owned by institutional investors. 0.4% of Wingstop shares are owned by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Texas Roadhouse received 3 more outperform votes than Wingstop when rated by MarketBeat users. However, 61.18% of users gave Wingstop an outperform vote while only 53.56% of users gave Texas Roadhouse an outperform vote.
Wingstop has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Wingstop currently has a consensus price target of $330.39, indicating a potential downside of 10.38%. Texas Roadhouse has a consensus price target of $157.32, indicating a potential downside of 8.89%. Given Wingstop's stronger consensus rating and higher probable upside, analysts clearly believe Texas Roadhouse is more favorable than Wingstop.
In the previous week, Texas Roadhouse had 5 more articles in the media than Wingstop. MarketBeat recorded 17 mentions for Texas Roadhouse and 12 mentions for Wingstop. Texas Roadhouse's average media sentiment score of 1.01 beat Wingstop's score of 0.65 indicating that Wingstop is being referred to more favorably in the media.
Summary
Texas Roadhouse beats Wingstop on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TXRH and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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