WING vs. CAKE, YUM, QSR, DRI, YUMC, TXRH, CAVA, ARMK, MAIN, and SG
Should you be buying Wingstop stock or one of its competitors? The main competitors of Wingstop include Cheesecake Factory (CAKE), Yum! Brands (YUM), Restaurant Brands International (QSR), Darden Restaurants (DRI), Yum China (YUMC), Texas Roadhouse (TXRH), CAVA Group (CAVA), Aramark (ARMK), Main Street Capital (MAIN), and Sweetgreen (SG). These companies are all part of the "eating places" industry.
Cheesecake Factory (NASDAQ:CAKE) and Wingstop (NASDAQ:WING) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, media sentiment, analyst recommendations, earnings, institutional ownership, community ranking and profitability.
Wingstop received 41 more outperform votes than Cheesecake Factory when rated by MarketBeat users. Likewise, 61.18% of users gave Wingstop an outperform vote while only 52.12% of users gave Cheesecake Factory an outperform vote.
Wingstop has a net margin of 16.75% compared to Wingstop's net margin of 3.07%. Wingstop's return on equity of 42.15% beat Cheesecake Factory's return on equity.
94.5% of Cheesecake Factory shares are held by institutional investors. 8.1% of Cheesecake Factory shares are held by company insiders. Comparatively, 0.4% of Wingstop shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Cheesecake Factory presently has a consensus price target of $39.58, suggesting a potential upside of 2.87%. Wingstop has a consensus price target of $330.39, suggesting a potential downside of 10.38%. Given Wingstop's higher probable upside, equities analysts clearly believe Cheesecake Factory is more favorable than Wingstop.
In the previous week, Cheesecake Factory had 3 more articles in the media than Wingstop. MarketBeat recorded 15 mentions for Cheesecake Factory and 12 mentions for Wingstop. Cheesecake Factory's average media sentiment score of 1.01 beat Wingstop's score of 0.61 indicating that Wingstop is being referred to more favorably in the news media.
Cheesecake Factory has higher revenue and earnings than Wingstop. Cheesecake Factory is trading at a lower price-to-earnings ratio than Wingstop, indicating that it is currently the more affordable of the two stocks.
Cheesecake Factory pays an annual dividend of $1.08 per share and has a dividend yield of 2.8%. Wingstop pays an annual dividend of $0.88 per share and has a dividend yield of 0.2%. Cheesecake Factory pays out 49.5% 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. Cheesecake Factory has increased its dividend for 1 consecutive years and Wingstop has increased its dividend for 6 consecutive years.
Cheesecake Factory has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Wingstop has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.
Summary
Wingstop beats Cheesecake Factory on 13 of the 21 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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