CAVA Group (NYSE:CAVA – Get Free Report) and Denny’s (NASDAQ:DENN – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Insider and Institutional Ownership
84.1% of Denny’s shares are owned by institutional investors. 5.5% of Denny’s shares are owned 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.
Earnings & Valuation
This table compares CAVA Group and Denny’s’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAVA Group | $564.12 million | 9.41 | N/A | N/A | N/A |
| Denny’s | $456.43 million | 1.41 | $74.71 million | $0.89 | 12.94 |
Analyst Ratings
This is a summary of current recommendations for CAVA Group and Denny’s, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAVA Group | 0 | 2 | 6 | 0 | 2.75 |
| Denny’s | 0 | 2 | 2 | 0 | 2.50 |
CAVA Group currently has a consensus target price of $45.86, indicating a potential downside of 3.80%. Denny’s has a consensus target price of $13.70, indicating a potential upside of 18.92%. Given Denny’s’ higher possible upside, analysts clearly believe Denny’s is more favorable than CAVA Group.
Profitability
This table compares CAVA Group and Denny’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CAVA Group | N/A | N/A | N/A |
| Denny’s | 11.35% | -69.18% | 6.86% |
About CAVA Group
CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company offers salads, dips, spreads, toppings, and dressings. It sells its products through whole food markets and grocery stores. The company also provides online food ordering services. Cava Group, Inc. was founded in 2006 and is based in Washington, District of Columbia.
About Denny’s
Denny's Corporation, through its subsidiaries, owns and operates franchised full-service restaurant chains under the Denny's and Keke's Breakfast Cafe brand in the United States and internationally. The company operates in two segments: Denny's and Other. The company was formerly known as Advantica Restaurant Group, Inc. and changed its name to Denny's Corporation in July 2002. Denny's Corporation was founded in 1953 and is headquartered in Spartanburg, South Carolina.
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