Wendy's (WEN) Competitors

Texas Roadhouse (NASDAQ:TXRH) and Wendy's (NASDAQ:WEN) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, community ranking, dividends, analyst recommendations, institutional ownership and media sentiment.

Which has preferable earnings & valuation, TXRH or WEN?

Texas Roadhouse has higher revenue and earnings than Wendy's. Wendy's 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	2.44	$304.88M	$5.82	29.06
Wendy's	$2.25B	1.38	$194.36M	$0.95	16.01

Does the MarketBeat Community prefer TXRH or WEN?

Wendy's received 140 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 63.15% of users gave Wendy's an outperform vote while only 53.69% of users gave Texas Roadhouse an outperform vote.

Company	Underperform	Outperform
Texas Roadhouse	Outperform Votes 597 53.69%	Underperform Votes 515 46.31%
Wendy's	Outperform Votes 737 63.15%	Underperform Votes 430 36.85%

Is TXRH or WEN a better dividend stock?

Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Wendy's pays an annual dividend of $1.00 per share and has a dividend yield of 6.6%. Texas Roadhouse pays out 41.9% of its earnings in the form of a dividend. Wendy's pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

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

94.8% of Texas Roadhouse shares are held by institutional investors. Comparatively, 86.0% of Wendy's shares are held by institutional investors. 0.5% of Texas Roadhouse shares are held by company insiders. Comparatively, 17.1% of Wendy's shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Is TXRH or WEN more profitable?

Wendy's has a net margin of 8.65% compared to Texas Roadhouse's net margin of 7.65%. Wendy's' return on equity of 75.56% beat Texas Roadhouse's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Texas Roadhouse	7.65%	31.33%	13.69%
Wendy's	8.65%	75.56%	4.03%

Does the media refer more to TXRH or WEN?

In the previous week, Wendy's had 6 more articles in the media than Texas Roadhouse. MarketBeat recorded 43 mentions for Wendy's and 37 mentions for Texas Roadhouse. Texas Roadhouse's average media sentiment score of 0.64 beat Wendy's' score of 0.22 indicating that Texas Roadhouse is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Texas Roadhouse	10 Very Positive mention(s)	2 Positive mention(s)	13 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Wendy's	6 Very Positive mention(s)	5 Positive mention(s)	21 Neutral mention(s)	7 Negative mention(s)	2 Very Negative mention(s)	Neutral

Do analysts recommend TXRH or WEN?

Texas Roadhouse presently has a consensus target price of $192.50, suggesting a potential upside of 13.82%. Wendy's has a consensus target price of $18.81, suggesting a potential upside of 23.66%. Given Wendy's' higher possible upside, analysts clearly believe Wendy's is more favorable than Texas Roadhouse.

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
Wendy's	2 Sell rating(s)	11 Hold rating(s)	4 Buy rating(s)	2 Strong Buy rating(s)	2.32

Which has more risk and volatility, TXRH or WEN?

Texas Roadhouse has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Wendy's has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Summary

Texas Roadhouse beats Wendy's on 12 of the 21 factors compared between the two stocks.