WING vs. TXRH, ARMK, YUMC, CAVA, DRI, PZZA, EAT, CAKE, CBRL, and JACK
Should you be buying Wingstop stock or one of its competitors? The main competitors of Wingstop include Texas Roadhouse (TXRH), Aramark (ARMK), Yum China (YUMC), CAVA Group (CAVA), Darden Restaurants (DRI), Papa John's International (PZZA), Brinker International (EAT), Cheesecake Factory (CAKE), Cracker Barrel Old Country Store (CBRL), and Jack in the Box (JACK). These companies are all part of the "eating places" industry.
Wingstop (NASDAQ:WING) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their community ranking, media sentiment, earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Texas Roadhouse has higher revenue and earnings than Wingstop. Texas Roadhouse is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
Texas Roadhouse received 3 more outperform votes than Wingstop when rated by MarketBeat users. However, 61.15% of users gave Wingstop an outperform vote while only 53.66% of users gave Texas Roadhouse an outperform vote.
Wingstop presently has a consensus price target of $290.83, indicating a potential downside of 20.26%. Texas Roadhouse has a consensus price target of $136.05, indicating a potential downside of 13.27%. Given Texas Roadhouse's higher probable upside, analysts clearly believe Texas Roadhouse is more favorable than Wingstop.
Wingstop has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
94.8% of Texas Roadhouse shares are owned by institutional investors. 0.4% of Wingstop shares are owned by insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Wingstop has a net margin of 15.25% compared to Texas Roadhouse's net margin of 6.58%. Texas Roadhouse's return on equity of 27.43% beat Wingstop's return on equity.
Wingstop pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.6%. Wingstop pays out 37.4% of its earnings in the form of a dividend. Texas Roadhouse pays out 53.9% 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.
In the previous week, Wingstop had 13 more articles in the media than Texas Roadhouse. MarketBeat recorded 21 mentions for Wingstop and 8 mentions for Texas Roadhouse. Texas Roadhouse's average media sentiment score of 0.86 beat Wingstop's score of 0.62 indicating that Texas Roadhouse is being referred to more favorably in the news media.
Summary
Texas Roadhouse beats Wingstop on 10 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WING 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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