Texas Roadhouse (TXRH) Competitors

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

Which has stronger earnings and valuation, TXRH or YUM?

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
Texas Roadhouse	$4.63B	2.45	$304.88M	$5.82	29.21
Yum! Brands	$7.55B	5.54	$1.49B	$5.22	28.72

Does the MarketBeat Community prefer TXRH or YUM?

Yum! Brands received 482 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 64.74% of users gave Yum! Brands an outperform vote while only 53.74% of users gave Texas Roadhouse an outperform vote.

Company	Underperform	Outperform
Texas Roadhouse	Outperform Votes 596 53.74%	Underperform Votes 513 46.26%
Yum! Brands	Outperform Votes 1078 64.74%	Underperform Votes 587 35.26%

Is TXRH or YUM more profitable?

Yum! Brands has a net margin of 19.68% 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
Texas Roadhouse	7.65%	31.33%	13.69%
Yum! Brands	19.68%	-20.33%	24.19%

Do insiders and institutionals hold more shares of TXRH or YUM?

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

Is TXRH or YUM a better dividend stock?

Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Texas Roadhouse pays out 41.9% of its earnings in the form of a dividend. Yum! Brands pays out 54.4% 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.

Do analysts recommend TXRH or YUM?

Texas Roadhouse presently has a consensus target price of $192.86, suggesting a potential upside of 13.46%. Yum! Brands has a consensus target price of $147.37, suggesting a potential downside of 1.69%. Given Texas Roadhouse's stronger consensus rating and higher probable upside, equities research analysts plainly believe Texas Roadhouse is more favorable than Yum! Brands.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Roadhouse	0 Sell rating(s)	11 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.52
Yum! Brands	0 Sell rating(s)	13 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.32

Does the media prefer TXRH or YUM?

In the previous week, Yum! Brands had 8 more articles in the media than Texas Roadhouse. MarketBeat recorded 37 mentions for Yum! Brands and 29 mentions for Texas Roadhouse. Yum! Brands' average media sentiment score of 0.77 beat Texas Roadhouse's score of 0.64 indicating that Yum! Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Texas Roadhouse	8 Very Positive mention(s)	1 Positive mention(s)	12 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
Yum! Brands	19 Very Positive mention(s)	4 Positive mention(s)	13 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has more risk and volatility, TXRH or YUM?

Texas Roadhouse has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Summary

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