SHAK vs. WEN, RUSHA, RUSHB, GMS, GPI, SIG, TRIP, ABG, AAP, and URBN
Should you be buying Shake Shack stock or one of its competitors? The main competitors of Shake Shack include Wendy's (WEN), Rush Enterprises (RUSHA), Rush Enterprises (RUSHB), GMS (GMS), Group 1 Automotive (GPI), Signet Jewelers (SIG), Tripadvisor (TRIP), Asbury Automotive Group (ABG), Advance Auto Parts (AAP), and Urban Outfitters (URBN). These companies are all part of the "retail/wholesale" sector.
Wendy's (NASDAQ:WEN) and Shake Shack (NYSE:SHAK) are both mid-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, community ranking, risk, profitability, media sentiment, valuation and dividends.
In the previous week, Wendy's had 41 more articles in the media than Shake Shack. MarketBeat recorded 48 mentions for Wendy's and 7 mentions for Shake Shack. Wendy's' average media sentiment score of 0.34 beat Shake Shack's score of -0.02 indicating that Shake Shack is being referred to more favorably in the news media.
86.0% of Wendy's shares are owned by institutional investors. Comparatively, 86.1% of Shake Shack shares are owned by institutional investors. 17.1% of Wendy's shares are owned by insiders. Comparatively, 10.1% of Shake Shack shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Wendy's received 222 more outperform votes than Shake Shack when rated by MarketBeat users. Likewise, 65.06% of users gave Wendy's an outperform vote while only 51.90% of users gave Shake Shack an outperform vote.
Wendy's has higher revenue and earnings than Shake Shack. Wendy's is trading at a lower price-to-earnings ratio than Shake Shack, indicating that it is currently the more affordable of the two stocks.
Wendy's presently has a consensus price target of $22.47, suggesting a potential upside of 18.28%. Shake Shack has a consensus price target of $88.67, suggesting a potential downside of 6.89%. Given Shake Shack's higher probable upside, research analysts plainly believe Wendy's is more favorable than Shake Shack.
Wendy's has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500.
Wendy's has a net margin of 9.37% compared to Wendy's' net margin of 1.82%. Shake Shack's return on equity of 56.24% beat Wendy's' return on equity.
Summary
Wendy's beats Shake Shack on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SHAK and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE 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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