Brinker International (EAT) Competitors

Cheesecake Factory (NASDAQ:CAKE) and Brinker International (NYSE:EAT) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their media sentiment, valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Do institutionals and insiders believe in CAKE or EAT?

94.5% of Cheesecake Factory shares are owned by institutional investors. 8.4% of Cheesecake Factory shares are owned by company insiders. Comparatively, 1.7% of Brinker International 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.

Which has more volatility & risk, CAKE or EAT?

Cheesecake Factory has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.

Does the media favor CAKE or EAT?

In the previous week, Brinker International had 38 more articles in the media than Cheesecake Factory. MarketBeat recorded 65 mentions for Brinker International and 27 mentions for Cheesecake Factory. Brinker International's average media sentiment score of 0.84 beat Cheesecake Factory's score of 0.82 indicating that Brinker International is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Cheesecake Factory	10 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Brinker International	24 Very Positive mention(s)	11 Positive mention(s)	20 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is CAKE or EAT a better dividend stock?

Cheesecake Factory pays an annual dividend of $1.08 per share and has a dividend yield of 1.7%. Brinker International pays an annual dividend of $1.52 per share and has a dividend yield of 1.0%. Cheesecake Factory pays out 33.2% of its earnings in the form of a dividend. Brinker International pays out 18.3% 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.

Which has preferable earnings & valuation, CAKE or EAT?

Cheesecake Factory has higher earnings, but lower revenue than Brinker International. Brinker International is trading at a lower price-to-earnings ratio than Cheesecake Factory, 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
Cheesecake Factory	$3.58B	0.88	$156.78M	$3.25	19.38
Brinker International	$5.38B	1.30	$155.30M	$8.31	19.02

Is CAKE or EAT more profitable?

Brinker International has a net margin of 7.12% compared to Cheesecake Factory's net margin of 4.33%. Brinker International's return on equity of 211.86% beat Cheesecake Factory's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Cheesecake Factory	4.33%	45.92%	5.93%
Brinker International	7.12%	211.86%	15.85%

Do analysts recommend CAKE or EAT?

Cheesecake Factory currently has a consensus price target of $61.94, suggesting a potential downside of 1.67%. Brinker International has a consensus price target of $171.41, suggesting a potential upside of 8.46%. Given Brinker International's stronger consensus rating and higher probable upside, analysts plainly believe Brinker International is more favorable than Cheesecake Factory.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheesecake Factory	4 Sell rating(s)	5 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.19
Brinker International	0 Sell rating(s)	13 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.24

Summary

Brinker International beats Cheesecake Factory on 12 of the 18 factors compared between the two stocks.