Yum! Brands (YUM) Competitors

Cheesecake Factory (NASDAQ:CAKE) and Yum! Brands (NYSE:YUM) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their media sentiment, institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

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

94.5% of Cheesecake Factory shares are owned by institutional investors. Comparatively, 82.4% of Yum! Brands shares are owned by institutional investors. 8.1% of Cheesecake Factory 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Is CAKE or YUM more profitable?

Yum! Brands has a net margin of 18.42% compared to Cheesecake Factory's net margin of 4.33%. Cheesecake Factory's return on equity of 46.06% beat Yum! Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cheesecake Factory	4.33%	46.06%	5.98%
Yum! Brands	18.42%	-20.80%	24.37%

Which has higher earnings and valuation, CAKE or YUM?

Yum! Brands has higher revenue and earnings than Cheesecake Factory. Cheesecake Factory is trading at a lower price-to-earnings ratio than Yum! Brands, 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
Cheesecake Factory	$3.58B	0.86	$156.78M	$3.19	19.57
Yum! Brands	$7.55B	5.34	$1.49B	$5.02	28.89

Do analysts rate CAKE or YUM?

Cheesecake Factory presently has a consensus target price of $55.75, indicating a potential downside of 10.69%. Yum! Brands has a consensus target price of $159.86, indicating a potential upside of 10.23%. Given Yum! Brands' stronger consensus rating and higher probable upside, analysts plainly believe Yum! Brands is more favorable than Cheesecake Factory.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheesecake Factory	4 Sell rating(s)	5 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.19
Yum! Brands	0 Sell rating(s)	13 Hold rating(s)	10 Buy rating(s)	0 Strong Buy rating(s)	2.43

Is CAKE or YUM a better dividend stock?

Cheesecake Factory pays an annual dividend of $1.08 per share and has a dividend yield of 1.7%. Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 2.0%. Cheesecake Factory pays out 33.9% of its earnings in the form of a dividend. Yum! Brands pays out 56.6% 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. Yum! Brands has raised its dividend for 8 consecutive years. Yum! Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has more risk and volatility, CAKE or YUM?

Cheesecake Factory has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Does the media prefer CAKE or YUM?

In the previous week, Yum! Brands had 13 more articles in the media than Cheesecake Factory. MarketBeat recorded 36 mentions for Yum! Brands and 23 mentions for Cheesecake Factory. Yum! Brands' average media sentiment score of 0.95 beat Cheesecake Factory's score of 0.41 indicating that Yum! Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cheesecake Factory	4 Very Positive mention(s)	6 Positive mention(s)	7 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Neutral
Yum! Brands	22 Very Positive mention(s)	6 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Yum! Brands beats Cheesecake Factory on 14 of the 19 factors compared between the two stocks.