WEN vs. SHAK, CPRI, GPI, ABG, SIG, AAP, GMS, URBN, TRIP, and AEO
Should you be buying Wendy's stock or one of its competitors? The main competitors of Wendy's include Shake Shack (SHAK), Capri (CPRI), Group 1 Automotive (GPI), Asbury Automotive Group (ABG), Signet Jewelers (SIG), Advance Auto Parts (AAP), GMS (GMS), Urban Outfitters (URBN), Tripadvisor (TRIP), and American Eagle Outfitters (AEO). These companies are all part of the "retail/wholesale" sector.
Shake Shack (NYSE:SHAK) and Wendy's (NASDAQ:WEN) are both mid-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, community ranking, institutional ownership, dividends, risk, profitability, media sentiment and valuation.
Shake Shack has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Wendy's has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
86.1% of Shake Shack shares are held by institutional investors. Comparatively, 86.0% of Wendy's shares are held by institutional investors. 10.1% of Shake Shack shares are held by insiders. Comparatively, 17.1% of Wendy's shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Wendy's received 221 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.
Wendy's has a net margin of 9.44% compared to Wendy's' net margin of 2.08%. Shake Shack's return on equity of 62.68% beat Wendy's' return on equity.
In the previous week, Wendy's had 16 more articles in the media than Shake Shack. MarketBeat recorded 65 mentions for Wendy's and 49 mentions for Shake Shack. Shake Shack's average media sentiment score of 0.32 beat Wendy's' score of 0.31 indicating that Wendy's is being referred to more favorably in the news media.
Shake Shack presently has a consensus price target of $97.94, suggesting a potential downside of 8.87%. Wendy's has a consensus price target of $22.60, suggesting a potential upside of 13.34%. Given Shake Shack's higher possible upside, analysts plainly believe Wendy's is more favorable than Shake Shack.
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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