WEN vs. SHAK, CNNE, GRIL, DNKN, TXRH, EAT, CAKE, BLMN, PZZA, and CBRL
Should you be buying Wendy's stock or one of its competitors? The main competitors of Wendy's include Shake Shack (SHAK), Cannae (CNNE), Muscle Maker (GRIL), Dunkin' Brands Group (DNKN), Texas Roadhouse (TXRH), Brinker International (EAT), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), Papa John's International (PZZA), and Cracker Barrel Old Country Store (CBRL).
Shake Shack (NYSE:SHAK) and Wendy's (NASDAQ:WEN) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, community ranking, risk, analyst recommendations and media sentiment.
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.
Wendy's received 218 more outperform votes than Shake Shack when rated by MarketBeat users. Likewise, 64.63% of users gave Wendy's an outperform vote while only 51.83% of users gave Shake Shack an outperform vote.
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.
Shake Shack currently has a consensus target price of $98.53, indicating a potential upside of 6.89%. Wendy's has a consensus target price of $22.11, indicating a potential upside of 32.64%. Given Shake Shack's higher possible upside, analysts plainly believe Wendy's is more favorable than Shake Shack.
In the previous week, Wendy's had 1 more articles in the media than Shake Shack. MarketBeat recorded 10 mentions for Wendy's and 9 mentions for Shake Shack. Shake Shack's average media sentiment score of 0.76 beat Wendy's' score of 0.40 indicating that Wendy's is being referred to more favorably in the news media.
Shake Shack has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Wendy's has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
86.1% of Shake Shack shares are owned by institutional investors. Comparatively, 86.0% of Wendy's shares are owned by institutional investors. 9.7% 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Wendy's beats Shake Shack on 12 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.
This 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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