Shake Shack (SHAK) Competitors

Shake Shack (NYSE:SHAK) and Yum China (NYSE:YUMC) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability, analyst recommendations, community ranking and media sentiment.

Do institutionals and insiders hold more shares of SHAK or YUMC?

86.1% of Shake Shack shares are held by institutional investors. Comparatively, 85.6% of Yum China shares are held by institutional investors. 9.7% of Shake Shack shares are held by company insiders. Comparatively, 0.3% of Yum China shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Which has preferable earnings & valuation, SHAK or YUMC?

Yum China has higher revenue and earnings than Shake Shack. Yum China is trading at a lower price-to-earnings ratio than Shake Shack, 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
Shake Shack	$1.09B	4.62	$20.26M	$0.17	695.47
Yum China	$10.98B	1.60	$827M	$2.26	20.46

Do analysts rate SHAK or YUMC?

Shake Shack currently has a consensus target price of $123.78, suggesting a potential upside of 4.69%. Yum China has a consensus target price of $49.57, suggesting a potential upside of 7.21%. Given Yum China's stronger consensus rating and higher possible upside, analysts clearly believe Yum China is more favorable than Shake Shack.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shake Shack	1 Sell rating(s)	8 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.50
Yum China	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	3.25

Is SHAK or YUMC more profitable?

Yum China has a net margin of 7.97% compared to Shake Shack's net margin of 0.68%. Yum China's return on equity of 13.39% beat Shake Shack's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Shake Shack	0.68%	6.28%	1.83%
Yum China	7.97%	13.39%	7.70%

Does the MarketBeat Community favor SHAK or YUMC?

Shake Shack received 132 more outperform votes than Yum China when rated by MarketBeat users. However, 64.39% of users gave Yum China an outperform vote while only 51.76% of users gave Shake Shack an outperform vote.

Company	Underperform	Outperform
Shake Shack	Outperform Votes 528 51.76%	Underperform Votes 492 48.24%
Yum China	Outperform Votes 396 64.39%	Underperform Votes 219 35.61%

Does the media favor SHAK or YUMC?

In the previous week, Yum China had 4 more articles in the media than Shake Shack. MarketBeat recorded 13 mentions for Yum China and 9 mentions for Shake Shack. Yum China's average media sentiment score of 1.39 beat Shake Shack's score of 0.27 indicating that Yum China is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Shake Shack	1 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Neutral
Yum China	10 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, SHAK or YUMC?

Shake Shack has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Yum China has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Summary

Yum China beats Shake Shack on 11 of the 18 factors compared between the two stocks.