Texas Roadhouse (TXRH) Competitors

Yum! Brands (NYSE:YUM) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, community ranking, dividends, profitability, risk, valuation, media sentiment and analyst recommendations.

Do institutionals & insiders have more ownership in YUM or TXRH?

82.4% of Yum! Brands shares are owned by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are owned by institutional investors. 0.3% of Yum! Brands shares are owned by insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Does the MarketBeat Community believe in YUM or TXRH?

Yum! Brands received 483 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 64.90% of users gave Yum! Brands an outperform vote while only 53.76% of users gave Texas Roadhouse an outperform vote.

Company	Underperform	Outperform
Yum! Brands	Outperform Votes 1076 64.90%	Underperform Votes 582 35.10%
Texas Roadhouse	Outperform Votes 593 53.76%	Underperform Votes 510 46.24%

Is YUM or TXRH a better dividend stock?

Yum! Brands pays an annual dividend of $2.68 per share and has a dividend yield of 2.1%. Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Yum! Brands pays out 50.1% of its earnings in the form of a dividend. Texas Roadhouse pays out 41.9% 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.

Does the media refer more to YUM or TXRH?

In the previous week, Yum! Brands had 3 more articles in the media than Texas Roadhouse. MarketBeat recorded 20 mentions for Yum! Brands and 17 mentions for Texas Roadhouse. Texas Roadhouse's average media sentiment score of 0.67 beat Yum! Brands' score of 0.53 indicating that Texas Roadhouse is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Yum! Brands	6 Very Positive mention(s)	0 Positive mention(s)	13 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Texas Roadhouse	7 Very Positive mention(s)	1 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend YUM or TXRH?

Yum! Brands presently has a consensus price target of $146.24, suggesting a potential upside of 16.70%. Texas Roadhouse has a consensus price target of $190.91, suggesting a potential upside of 6.69%. Given Yum! Brands' higher probable upside, equities analysts clearly believe Yum! Brands is more favorable than Texas Roadhouse.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yum! Brands	0 Sell rating(s)	11 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.35
Texas Roadhouse	0 Sell rating(s)	14 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.44

Which has more risk and volatility, YUM or TXRH?

Yum! Brands has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Is YUM or TXRH more profitable?

Yum! Brands has a net margin of 21.13% compared to Texas Roadhouse's net margin of 7.65%. Texas Roadhouse's return on equity of 31.33% beat Yum! Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Yum! Brands	21.13%	-18.93%	23.12%
Texas Roadhouse	7.65%	31.33%	13.69%

Which has better earnings and valuation, YUM or TXRH?

Yum! Brands has higher revenue and earnings than Texas Roadhouse. Yum! Brands is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yum! Brands	$7.08B	4.94	$1.60B	$5.35	23.42
Texas Roadhouse	$4.63B	2.58	$304.88M	$5.82	30.75

Summary

Yum! Brands beats Texas Roadhouse on 11 of the 20 factors compared between the two stocks.