TXRH vs. ARMK, DRI, EAT, PZZA, CBRL, JACK, YUM, WING, CAVA, and YUMC
Should you be buying Texas Roadhouse stock or one of its competitors? The main competitors of Texas Roadhouse include Aramark (ARMK), Darden Restaurants (DRI), Brinker International (EAT), Papa John's International (PZZA), Cracker Barrel Old Country Store (CBRL), Jack in the Box (JACK), Yum! Brands (YUM), Wingstop (WING), CAVA Group (CAVA), and Yum China (YUMC). These companies are all part of the "eating places" industry.
Aramark (NYSE:ARMK) and Texas Roadhouse (NASDAQ:TXRH) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, media sentiment, community ranking, institutional ownership, valuation, risk, analyst recommendations and earnings.
Aramark has higher revenue and earnings than Texas Roadhouse. Aramark is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.
Aramark pays an annual dividend of $0.38 per share and has a dividend yield of 1.2%. Texas Roadhouse pays an annual dividend of $2.44 per share and has a dividend yield of 1.5%. Aramark pays out 15.9% of its earnings in the form of a dividend. Texas Roadhouse pays out 53.9% 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. Texas Roadhouse has increased its dividend for 5 consecutive years. Texas Roadhouse is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Aramark currently has a consensus price target of $33.04, indicating a potential upside of 1.59%. Texas Roadhouse has a consensus price target of $138.76, indicating a potential downside of 11.87%. Given Texas Roadhouse's stronger consensus rating and higher probable upside, equities analysts clearly believe Aramark is more favorable than Texas Roadhouse.
In the previous week, Texas Roadhouse had 4 more articles in the media than Aramark. MarketBeat recorded 11 mentions for Texas Roadhouse and 7 mentions for Aramark. Texas Roadhouse's average media sentiment score of 0.79 beat Aramark's score of 0.77 indicating that Aramark is being referred to more favorably in the media.
Texas Roadhouse has a net margin of 6.58% compared to Texas Roadhouse's net margin of 3.37%. Aramark's return on equity of 27.43% beat Texas Roadhouse's return on equity.
94.8% of Texas Roadhouse shares are owned by institutional investors. 1.9% of Aramark shares are owned by insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Aramark has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Texas Roadhouse received 141 more outperform votes than Aramark when rated by MarketBeat users. However, 62.32% of users gave Aramark an outperform vote while only 53.70% of users gave Texas Roadhouse an outperform vote.
Summary
Texas Roadhouse beats Aramark on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TXRH 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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