WING vs. TXRH, CAVA, ARMK, YUMC, DRI, SG, EAT, CAKE, PZZA, and CBRL
Should you be buying Wingstop stock or one of its competitors? The main competitors of Wingstop include Texas Roadhouse (TXRH), CAVA Group (CAVA), Aramark (ARMK), Yum China (YUMC), Darden Restaurants (DRI), Sweetgreen (SG), Brinker International (EAT), Cheesecake Factory (CAKE), Papa John's International (PZZA), and Cracker Barrel Old Country Store (CBRL). These companies are all part of the "eating places" industry.
Wingstop (NASDAQ:WING) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, community ranking, media sentiment, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Wingstop has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Texas Roadhouse has higher revenue and earnings than Wingstop. Texas Roadhouse is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
Wingstop has a net margin of 16.75% compared to Texas Roadhouse's net margin of 6.94%. Texas Roadhouse's return on equity of 28.85% beat Wingstop's return on equity.
Texas Roadhouse received 3 more outperform votes than Wingstop when rated by MarketBeat users. However, 61.18% of users gave Wingstop an outperform vote while only 53.56% of users gave Texas Roadhouse an outperform vote.
In the previous week, Texas Roadhouse had 2 more articles in the media than Wingstop. MarketBeat recorded 18 mentions for Texas Roadhouse and 16 mentions for Wingstop. Texas Roadhouse's average media sentiment score of 0.97 beat Wingstop's score of 0.66 indicating that Texas Roadhouse is being referred to more favorably in the news media.
94.8% of Texas Roadhouse shares are held by institutional investors. 0.4% of Wingstop shares are held by insiders. Comparatively, 0.5% of Texas Roadhouse shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Wingstop currently has a consensus target price of $330.39, indicating a potential downside of 14.04%. Texas Roadhouse has a consensus target price of $155.55, indicating a potential downside of 7.82%. Given Texas Roadhouse's stronger consensus rating and higher probable upside, analysts plainly believe Texas Roadhouse is more favorable than Wingstop.
Wingstop pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Wingstop pays out 31.3% of its earnings in the form of a dividend. Texas Roadhouse pays out 49.4% 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.
Summary
Texas Roadhouse beats Wingstop on 13 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WING 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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