Head-To-Head Analysis: CAVA Group (NYSE:CAVA) vs. Texas Roadhouse (NASDAQ:TXRH)

CAVA Group (NYSE:CAVA) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

73.2% of CAVA Group shares are owned by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are owned by institutional investors. 0.5% of Texas Roadhouse shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares CAVA Group and Texas Roadhouse”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$728.70 million	19.90	$13.28 million	$0.41	309.32
Texas Roadhouse	$4.95 billion	2.39	$304.88 million	$4.94	35.86

Texas Roadhouse has higher revenue and earnings than CAVA Group. Texas Roadhouse is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CAVA Group has a beta of 3.34, suggesting that its stock price is 234% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CAVA Group and Texas Roadhouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	7	8	0	2.53
Texas Roadhouse	0	12	10	0	2.45

CAVA Group presently has a consensus target price of $114.15, suggesting a potential downside of 9.99%. Texas Roadhouse has a consensus target price of $172.95, suggesting a potential downside of 2.36%. Given Texas Roadhouse’s higher possible upside, analysts clearly believe Texas Roadhouse is more favorable than CAVA Group.

Profitability

This table compares CAVA Group and Texas Roadhouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAVA Group	5.04%	7.37%	4.25%
Texas Roadhouse	7.47%	30.94%	13.40%

Summary

Texas Roadhouse beats CAVA Group on 10 of the 14 factors compared between the two stocks.

About CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.