Wendy's (WEN) Competitors

Papa John's International (NASDAQ:PZZA) and Wendy's (NASDAQ:WEN) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, media sentiment, risk, earnings, valuation, institutional ownership and dividends.

Is PZZA or WEN a better dividend stock?

Papa John's International pays an annual dividend of $1.84 per share and has a dividend yield of 4.0%. Wendy's pays an annual dividend of $0.56 per share and has a dividend yield of 5.3%. Papa John's International pays out 81.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wendy's pays out 58.3% of its earnings in the form of a dividend. Papa John's International has increased its dividend for 4 consecutive years. Wendy's is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts rate PZZA or WEN?

Papa John's International currently has a consensus price target of $52.33, indicating a potential upside of 13.06%. Wendy's has a consensus price target of $13.76, indicating a potential upside of 29.35%. Given Wendy's' higher possible upside, analysts plainly believe Wendy's is more favorable than Papa John's International.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Papa John's International	0 Sell rating(s)	6 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.45
Wendy's	2 Sell rating(s)	12 Hold rating(s)	6 Buy rating(s)	3 Strong Buy rating(s)	2.43

Do institutionals and insiders hold more shares of PZZA or WEN?

86.0% of Wendy's shares are held by institutional investors. 1.3% of Papa John's International shares are held by company insiders. Comparatively, 17.0% of Wendy's shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Does the media refer more to PZZA or WEN?

In the previous week, Wendy's had 16 more articles in the media than Papa John's International. MarketBeat recorded 29 mentions for Wendy's and 13 mentions for Papa John's International. Papa John's International's average media sentiment score of 1.54 beat Wendy's' score of 0.18 indicating that Papa John's International is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Papa John's International	12 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Wendy's	8 Very Positive mention(s)	4 Positive mention(s)	11 Neutral mention(s)	6 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more risk and volatility, PZZA or WEN?

Papa John's International has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Wendy's has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.

Which has stronger earnings & valuation, PZZA or WEN?

Wendy's has higher revenue and earnings than Papa John's International. Wendy's is trading at a lower price-to-earnings ratio than Papa John's International, 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
Papa John's International	$2.06B	0.74	$83.49M	$2.26	20.48
Wendy's	$2.25B	0.90	$194.36M	$0.96	11.08

Is PZZA or WEN more profitable?

Wendy's has a net margin of 8.63% compared to Papa John's International's net margin of 3.58%. Wendy's' return on equity of 103.07% beat Papa John's International's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Papa John's International	3.58%	-14.42%	6.78%
Wendy's	8.63%	103.07%	3.94%

Summary

Wendy's beats Papa John's International on 13 of the 20 factors compared between the two stocks.