WING vs. TXRH, CAVA, ARMK, YUMC, DRI, SG, EAT, CAKE, PZZA, and CBRL
Should you be buying Wingstop stock or one of its competitors? The main competitors of Wingstop include Texas Roadhouse (TXRH), CAVA Group (CAVA), Aramark (ARMK), Yum China (YUMC), Darden Restaurants (DRI), Sweetgreen (SG), Brinker International (EAT), Cheesecake Factory (CAKE), Papa John's International (PZZA), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "eating places" industry.
Texas Roadhouse (NASDAQ:TXRH) and Wingstop (NASDAQ:WING) 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 community ranking, institutional ownership, media sentiment, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Texas Roadhouse presently has a consensus target price of $155.55, indicating a potential downside of 8.31%. Wingstop has a consensus target price of $330.39, indicating a potential downside of 14.47%. Given Wingstop's stronger consensus rating and higher possible upside, research analysts clearly believe Texas Roadhouse is more favorable than Wingstop.
94.8% of Texas Roadhouse shares are owned by institutional investors. 0.5% of Texas Roadhouse shares are owned by insiders. Comparatively, 0.4% of Wingstop shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Texas Roadhouse has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Wingstop has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.
Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Wingstop pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. Texas Roadhouse pays out 49.4% of its earnings in the form of a dividend. Wingstop pays out 31.3% 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. Texas Roadhouse has increased its dividend for 5 consecutive years and Wingstop has increased its dividend for 6 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.
In the previous week, Wingstop had 5 more articles in the media than Texas Roadhouse. MarketBeat recorded 15 mentions for Wingstop and 10 mentions for Texas Roadhouse. Wingstop's average media sentiment score of 0.87 beat Texas Roadhouse's score of 0.79 indicating that Texas Roadhouse is being referred to more favorably in the media.
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.
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 53.61% of users gave Texas Roadhouse an outperform vote.
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 WING 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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