Texas Roadhouse (TXRH) Competitors

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

Which has better valuation and earnings, TXRH or YUM?

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
Texas Roadhouse	$5.50B	2.30	$304.88M	$6.48	29.31
Yum! Brands	$7.74B	5.28	$1.49B	$5.02	29.21

Does the media refer more to TXRH or YUM?

In the previous week, Texas Roadhouse had 10 more articles in the media than Yum! Brands. MarketBeat recorded 34 mentions for Texas Roadhouse and 24 mentions for Yum! Brands. Yum! Brands' average media sentiment score of 1.25 beat Texas Roadhouse's score of 0.74 indicating that Yum! Brands is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Texas Roadhouse	18 Very Positive mention(s)	2 Positive mention(s)	8 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Yum! Brands	20 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals believe 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 insiders. Comparatively, 0.3% of Yum! Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Do analysts recommend TXRH or YUM?

Texas Roadhouse presently has a consensus target price of $191.62, suggesting a potential upside of 0.87%. Yum! Brands has a consensus target price of $156.70, suggesting a potential upside of 6.85%. Given Yum! Brands' higher probable upside, analysts clearly believe Yum! Brands is more favorable than Texas Roadhouse.

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

Does the MarketBeat Community prefer TXRH or YUM?

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

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 1.4%. 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 56.6% 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. Texas Roadhouse has raised its dividend for 6 consecutive years and Yum! Brands has raised its dividend for 8 consecutive years. Yum! Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has more volatility & risk, TXRH or YUM?

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

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%

Summary

Yum! Brands beats Texas Roadhouse on 11 of the 21 factors compared between the two stocks.