YUMC vs. WING, TXRH, DRI, CAVA, QSR, YUM, WBA, BBY, DKS, and CVNA
Should you be buying Yum China stock or one of its competitors? The main competitors of Yum China include Wingstop (WING), Texas Roadhouse (TXRH), Darden Restaurants (DRI), CAVA Group (CAVA), Restaurant Brands International (QSR), Yum! Brands (YUM), Walgreens Boots Alliance (WBA), Best Buy (BBY), DICK'S Sporting Goods (DKS), and Carvana (CVNA). These companies are all part of the "retail/wholesale" sector.
Yum China (NYSE:YUMC) and Wingstop (NASDAQ:WING) are both large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, community ranking, profitability, media sentiment, earnings, risk and valuation.
Wingstop has a net margin of 16.75% compared to Yum China's net margin of 7.49%. Yum China's return on equity of 11.65% beat Wingstop's return on equity.
Yum China presently has a consensus price target of $54.65, suggesting a potential upside of 46.51%. Wingstop has a consensus price target of $330.39, suggesting a potential downside of 16.14%. Given Yum China's stronger consensus rating and higher probable upside, research analysts plainly believe Yum China is more favorable than Wingstop.
85.6% of Yum China shares are owned by institutional investors. 0.3% of Yum China shares are owned by company insiders. Comparatively, 0.4% of Wingstop 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.
Yum China has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Wingstop has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
In the previous week, Wingstop had 40 more articles in the media than Yum China. MarketBeat recorded 49 mentions for Wingstop and 9 mentions for Yum China. Yum China's average media sentiment score of 0.99 beat Wingstop's score of 0.46 indicating that Yum China is being referred to more favorably in the media.
Wingstop received 180 more outperform votes than Yum China when rated by MarketBeat users. However, 64.19% of users gave Yum China an outperform vote while only 61.18% of users gave Wingstop an outperform vote.
Yum China has higher revenue and earnings than Wingstop. Yum China is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
Yum China pays an annual dividend of $0.64 per share and has a dividend yield of 1.7%. Wingstop pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. Yum China pays out 32.2% of its earnings in the form of a dividend. Wingstop pays out 31.3% 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.
Summary
Wingstop beats Yum China on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding YUMC 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 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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