CAKE vs. ARCO, PLAY, WEN, EAT, BLMN, PZZA, JACK, CBRL, BJRI, and CHUY
Should you be buying Cheesecake Factory stock or one of its competitors? The main competitors of Cheesecake Factory include Arcos Dorados (ARCO), Dave & Buster's Entertainment (PLAY), Wendy's (WEN), Brinker International (EAT), Bloomin' Brands (BLMN), Papa John's International (PZZA), Jack in the Box (JACK), Cracker Barrel Old Country Store (CBRL), BJ's Restaurants (BJRI), and Chuy's (CHUY). These companies are all part of the "retail/wholesale" sector.
Arcos Dorados (NYSE:ARCO) and Cheesecake Factory (NASDAQ:CAKE) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, media sentiment, dividends, profitability, community ranking and analyst recommendations.
Arcos Dorados has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Cheesecake Factory has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.
55.9% of Arcos Dorados shares are owned by institutional investors. Comparatively, 94.5% of Cheesecake Factory shares are owned by institutional investors. 8.1% of Cheesecake Factory shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Arcos Dorados pays an annual dividend of $0.24 per share and has a dividend yield of 2.5%. Cheesecake Factory pays an annual dividend of $1.08 per share and has a dividend yield of 2.9%. Arcos Dorados pays out 29.6% of its earnings in the form of a dividend. Cheesecake Factory pays out 49.5% 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.
Arcos Dorados has higher revenue and earnings than Cheesecake Factory. Arcos Dorados is trading at a lower price-to-earnings ratio than Cheesecake Factory, indicating that it is currently the more affordable of the two stocks.
In the previous week, Cheesecake Factory had 7 more articles in the media than Arcos Dorados. MarketBeat recorded 8 mentions for Cheesecake Factory and 1 mentions for Arcos Dorados. Cheesecake Factory's average media sentiment score of 0.40 beat Arcos Dorados' score of 0.30 indicating that Arcos Dorados is being referred to more favorably in the media.
Arcos Dorados currently has a consensus price target of $13.83, suggesting a potential upside of 43.35%. Cheesecake Factory has a consensus price target of $39.58, suggesting a potential upside of 5.89%. Given Cheesecake Factory's stronger consensus rating and higher probable upside, equities research analysts plainly believe Arcos Dorados is more favorable than Cheesecake Factory.
Cheesecake Factory received 255 more outperform votes than Arcos Dorados when rated by MarketBeat users. However, 55.24% of users gave Arcos Dorados an outperform vote while only 52.17% of users gave Cheesecake Factory an outperform vote.
Arcos Dorados has a net margin of 3.90% compared to Arcos Dorados' net margin of 3.07%. Arcos Dorados' return on equity of 42.15% beat Cheesecake Factory's return on equity.
Summary
Cheesecake Factory beats Arcos Dorados on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CAKE 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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