Texas Roadhouse (TXRH) Competitors

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

Do institutionals and insiders believe in YUM or TXRH?

82.4% of Yum! Brands shares are owned by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are owned by institutional investors. 0.3% of Yum! Brands shares are owned by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Do analysts prefer YUM or TXRH?

Yum! Brands presently has a consensus target price of $156.70, suggesting a potential upside of 7.53%. Texas Roadhouse has a consensus target price of $191.62, suggesting a potential upside of 0.95%. Given Yum! Brands' higher probable upside, research analysts clearly believe Yum! Brands is more favorable than Texas Roadhouse.

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

Does the MarketBeat Community favor YUM or TXRH?

Yum! Brands received 484 more outperform votes than Texas Roadhouse when rated by MarketBeat users. Likewise, 64.33% of users gave Yum! Brands an outperform vote while only 53.48% of users gave Texas Roadhouse an outperform vote.

Company	Underperform	Outperform
Yum! Brands	Outperform Votes 1084 64.33%	Underperform Votes 601 35.67%
Texas Roadhouse	Outperform Votes 600 53.48%	Underperform Votes 522 46.52%

Which has more risk & volatility, YUM or TXRH?

Yum! Brands has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Is YUM or TXRH a better dividend stock?

Yum! Brands pays an annual dividend of $2.84 per share and has a dividend yield of 1.9%. Texas Roadhouse pays an annual dividend of $2.72 per share and has a dividend yield of 1.4%. Yum! Brands pays out 56.6% of its earnings in the form of a dividend. Texas Roadhouse pays out 42.0% 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. Yum! Brands has raised its dividend for 8 consecutive years and Texas Roadhouse has raised its dividend for 6 consecutive years. Yum! Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has preferable earnings and valuation, YUM or TXRH?

Yum! Brands has higher revenue and earnings than Texas Roadhouse. Yum! Brands is trading at a lower price-to-earnings ratio than Texas Roadhouse, 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
Yum! Brands	$7.74B	5.23	$1.49B	$5.02	29.03
Texas Roadhouse	$5.50B	2.29	$304.88M	$6.48	29.29

Does the media refer more to YUM or TXRH?

In the previous week, Yum! Brands had 26 more articles in the media than Texas Roadhouse. MarketBeat recorded 39 mentions for Yum! Brands and 13 mentions for Texas Roadhouse. Yum! Brands' average media sentiment score of 1.28 beat Texas Roadhouse's score of 1.17 indicating that Yum! Brands is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Yum! Brands	27 Very Positive mention(s)	4 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Texas Roadhouse	9 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is YUM or TXRH 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
Yum! Brands	19.68%	-20.33%	24.19%
Texas Roadhouse	8.07%	34.02%	15.11%

Summary

Yum! Brands beats Texas Roadhouse on 12 of the 21 factors compared between the two stocks.