WEN vs. SHAK, GPI, URBN, GMS, SIG, CPRI, AAP, ABG, TRIP, and RUSHA
Should you be buying Wendy's stock or one of its competitors? The main competitors of Wendy's include Shake Shack (SHAK), Group 1 Automotive (GPI), Urban Outfitters (URBN), GMS (GMS), Signet Jewelers (SIG), Capri (CPRI), Advance Auto Parts (AAP), Asbury Automotive Group (ABG), Tripadvisor (TRIP), and Rush Enterprises (RUSHA). 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 investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk, community ranking, media sentiment and profitability.
Wendy's has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.
Wendy's received 220 more outperform votes than Shake Shack when rated by MarketBeat users. Likewise, 64.69% of users gave Wendy's an outperform vote while only 51.78% of users gave Shake Shack an outperform vote.
In the previous week, Wendy's had 6 more articles in the media than Shake Shack. MarketBeat recorded 28 mentions for Wendy's and 22 mentions for Shake Shack. Wendy's' average media sentiment score of 0.56 beat Shake Shack's score of 0.32 indicating that Wendy's is being referred to more favorably in the media.
Wendy's currently has a consensus target price of $22.06, indicating a potential upside of 19.93%. Shake Shack has a consensus target price of $98.35, indicating a potential downside of 0.81%. Given Wendy's' higher possible upside, research analysts plainly believe Wendy's is more favorable than Shake Shack.
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 company insiders. Comparatively, 10.1% of Shake Shack shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Wendy's has a net margin of 9.44% compared to Shake Shack's net margin of 2.08%. Wendy's' return on equity of 62.68% beat Shake Shack's return on equity.
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.
Summary
Wendy's beats Shake Shack on 12 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WEN 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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