YUMC vs. WING, TXRH, DRI, CAVA, QSR, YUM, WBA, BBY, DKS, and CVNA
Should you be buying Yum China stock or one of its competitors? The main competitors of Yum China include Wingstop (WING), Texas Roadhouse (TXRH), Darden Restaurants (DRI), CAVA Group (CAVA), Restaurant Brands International (QSR), Yum! Brands (YUM), Walgreens Boots Alliance (WBA), Best Buy (BBY), DICK'S Sporting Goods (DKS), and Carvana (CVNA). These companies are all part of the "retail/wholesale" sector.
Wingstop (NASDAQ:WING) and Yum China (NYSE:YUMC) are both large-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, community ranking, dividends, institutional ownership, media sentiment, valuation and risk.
Wingstop received 180 more outperform votes than Yum China when rated by MarketBeat users. However, 64.19% of users gave Yum China an outperform vote while only 61.18% of users gave Wingstop an outperform vote.
Wingstop pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. Yum China pays an annual dividend of $0.64 per share and has a dividend yield of 1.7%. Wingstop pays out 31.3% of its earnings in the form of a dividend. Yum China pays out 32.2% 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. Wingstop has increased its dividend for 6 consecutive years and Yum China has increased its dividend for 2 consecutive years.
Wingstop has a net margin of 16.75% compared to Wingstop's net margin of 7.49%. Wingstop's return on equity of 11.65% beat Yum China's return on equity.
Wingstop has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Yum China has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
Wingstop currently has a consensus target price of $330.39, indicating a potential downside of 14.97%. Yum China has a consensus target price of $54.65, indicating a potential upside of 42.28%. Given Wingstop's stronger consensus rating and higher probable upside, analysts plainly believe Yum China is more favorable than Wingstop.
In the previous week, Wingstop had 27 more articles in the media than Yum China. MarketBeat recorded 58 mentions for Wingstop and 31 mentions for Yum China. Wingstop's average media sentiment score of 0.58 beat Yum China's score of 0.49 indicating that Yum China is being referred to more favorably in the news media.
85.6% of Yum China shares are owned by institutional investors. 0.4% of Wingstop shares are owned by company insiders. Comparatively, 0.3% of Yum China shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Yum China has higher revenue and earnings than Wingstop. Yum China is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
Summary
Wingstop beats Yum China on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding YUMC 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 NYSE 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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