TXRH vs. YUMC, WING, ARMK, YUM, DRI, DPZ, WEN, EAT, CAKE, and BLMN
Should you be buying Texas Roadhouse stock or one of its competitors? The main competitors of Texas Roadhouse include Yum China (YUMC), Wingstop (WING), Aramark (ARMK), Yum! Brands (YUM), Darden Restaurants (DRI), Domino's Pizza (DPZ), Wendy's (WEN), Brinker International (EAT), Cheesecake Factory (CAKE), and Bloomin' Brands (BLMN).
Yum China (NYSE:YUMC) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, community ranking, dividends, earnings, institutional ownership, analyst recommendations, valuation and media sentiment.
85.6% of Yum China shares are held by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are held by institutional investors. 0.3% of Yum China shares are held by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are held 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 presently has a consensus price target of $54.65, suggesting a potential upside of 82.29%. Texas Roadhouse has a consensus price target of $166.64, suggesting a potential downside of 3.73%. Given Texas Roadhouse's stronger consensus rating and higher possible upside, equities analysts clearly believe Yum China is more favorable than Texas Roadhouse.
Yum China has higher revenue and earnings than Texas Roadhouse. Yum China is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.
In the previous week, Texas Roadhouse had 23 more articles in the media than Yum China. MarketBeat recorded 31 mentions for Texas Roadhouse and 8 mentions for Yum China. Yum China's average media sentiment score of 0.71 beat Texas Roadhouse's score of 0.52 indicating that Texas Roadhouse is being referred to more favorably in the news media.
Texas Roadhouse received 189 more outperform votes than Yum China when rated by MarketBeat users. However, 64.19% of users gave Yum China an outperform vote while only 53.62% of users gave Texas Roadhouse an outperform vote.
Yum China pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.4%. Yum China pays out 32.2% of its earnings in the form of a dividend. Texas Roadhouse pays out 49.4% 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. Yum China is clearly the better dividend stock, given its higher yield and lower payout ratio.
Yum China has a net margin of 7.49% compared to Yum China's net margin of 6.94%. Yum China's return on equity of 28.85% beat Texas Roadhouse's return on equity.
Yum China has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Summary
Texas Roadhouse beats Yum China on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TXRH 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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