Texas Roadhouse (TXRH) Competitors

Texas Roadhouse (NASDAQ:TXRH) and Yum! Brands (NYSE:YUM) are both large-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, media sentiment, institutional ownership, community ranking, risk and dividends.

Is TXRH or YUM more profitable?

Yum! Brands has a net margin of 19.68% compared to Texas Roadhouse's net margin of 8.07%. Texas Roadhouse's return on equity of 34.02% beat Yum! Brands' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Texas Roadhouse	8.07%	34.02%	15.11%
Yum! Brands	19.68%	-20.33%	24.19%

Do institutionals & insiders have more ownership in TXRH or YUM?

94.8% of Texas Roadhouse shares are owned by institutional investors. Comparatively, 82.4% of Yum! Brands shares are owned by institutional investors. 0.5% of Texas Roadhouse 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Does the MarketBeat Community prefer TXRH or YUM?

Yum! Brands received 485 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 64.37% of users gave Yum! Brands an outperform vote while only 53.48% of users gave Texas Roadhouse an outperform vote.

Company	Underperform	Outperform
Texas Roadhouse	Outperform Votes 599 53.48%	Underperform Votes 521 46.52%
Yum! Brands	Outperform Votes 1084 64.37%	Underperform Votes 600 35.63%

Is TXRH or YUM a better dividend stock?

Texas Roadhouse pays an annual dividend of $2.72 per share and has a dividend yield of 1.6%. Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Texas Roadhouse pays out 42.0% of its earnings in the form of a dividend. Yum! Brands pays out 54.4% 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.

Which has higher earnings and valuation, TXRH or YUM?

Yum! Brands has higher revenue and earnings than Texas Roadhouse. Texas Roadhouse 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
Texas Roadhouse	$5.37B	2.12	$304.88M	$6.47	26.55
Yum! Brands	$7.55B	5.50	$1.49B	$5.22	28.58

Which has more volatility and risk, TXRH or YUM?

Texas Roadhouse has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Does the media prefer TXRH or YUM?

In the previous week, Yum! Brands had 31 more articles in the media than Texas Roadhouse. MarketBeat recorded 51 mentions for Yum! Brands and 20 mentions for Texas Roadhouse. Texas Roadhouse's average media sentiment score of 1.24 beat Yum! Brands' score of 0.84 indicating that Texas Roadhouse is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Texas Roadhouse	15 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Yum! Brands	22 Very Positive mention(s)	6 Positive mention(s)	13 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend TXRH or YUM?

Texas Roadhouse currently has a consensus target price of $192.29, suggesting a potential upside of 11.93%. Yum! Brands has a consensus target price of $156.20, suggesting a potential upside of 4.68%. Given Texas Roadhouse's stronger consensus rating and higher possible upside, equities analysts plainly believe Texas Roadhouse is more favorable than Yum! Brands.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Roadhouse	0 Sell rating(s)	10 Hold rating(s)	11 Buy rating(s)	0 Strong Buy rating(s)	2.52
Yum! Brands	0 Sell rating(s)	16 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.27

Summary

Yum! Brands beats Texas Roadhouse on 11 of the 20 factors compared between the two stocks.