WEN vs. SHAK, CPRI, GPI, ABG, SIG, AAP, GMS, URBN, TRIP, and AEO
Should you be buying Wendy's stock or one of its competitors? The main competitors of Wendy's include Shake Shack (SHAK), Capri (CPRI), Group 1 Automotive (GPI), Asbury Automotive Group (ABG), Signet Jewelers (SIG), Advance Auto Parts (AAP), GMS (GMS), Urban Outfitters (URBN), Tripadvisor (TRIP), and American Eagle Outfitters (AEO). These companies are all part of the "retail/wholesale" sector.
Shake Shack (NYSE:SHAK) and Wendy's (NASDAQ:WEN) are both mid-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, community ranking, media sentiment, analyst recommendations, dividends, profitability, valuation, risk and earnings.
86.1% of Shake Shack shares are owned by institutional investors. Comparatively, 86.0% of Wendy's shares are owned by institutional investors. 10.1% of Shake Shack shares are owned by insiders. Comparatively, 17.1% of Wendy's shares are owned by 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.
Wendy's has higher revenue and earnings than Shake Shack. Wendy's is trading at a lower price-to-earnings ratio than Shake Shack, indicating that it is currently the more affordable of the two stocks.
Wendy's received 220 more outperform votes than Shake Shack when rated by MarketBeat users. Likewise, 64.69% of users gave Wendy's an outperform vote while only 51.83% of users gave Shake Shack an outperform vote.
Shake Shack currently has a consensus target price of $98.24, indicating a potential downside of 3.68%. Wendy's has a consensus target price of $22.42, indicating a potential upside of 15.69%. Given Shake Shack's higher possible upside, analysts plainly believe Wendy's is more favorable than Shake Shack.
Wendy's has a net margin of 9.44% compared to Wendy's' net margin of 2.08%. Shake Shack's return on equity of 62.68% beat Wendy's' return on equity.
Shake Shack has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Wendy's has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
In the previous week, Wendy's had 8 more articles in the media than Shake Shack. MarketBeat recorded 56 mentions for Wendy's and 48 mentions for Shake Shack. Wendy's' average media sentiment score of 0.42 beat Shake Shack's score of 0.33 indicating that Shake Shack is being referred to more favorably in the media.
Summary
Wendy's beats Shake Shack on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WEN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis 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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