SHAK vs. WEN, AAP, SIG, ABG, AEO, CPRI, GPI, ZGN, M, and GMS
Should you be buying Shake Shack stock or one of its competitors? The main competitors of Shake Shack include Wendy's (WEN), Advance Auto Parts (AAP), Signet Jewelers (SIG), Asbury Automotive Group (ABG), American Eagle Outfitters (AEO), Capri (CPRI), Group 1 Automotive (GPI), Ermenegildo Zegna (ZGN), Macy's (M), and GMS (GMS). 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 better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, media sentiment, analyst recommendations, institutional ownership, community ranking, earnings and dividends.
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.
Wendy's has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.
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 insiders. Comparatively, 10.1% of Shake Shack shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
In the previous week, Wendy's had 6 more articles in the media than Shake Shack. MarketBeat recorded 48 mentions for Wendy's and 42 mentions for Shake Shack. Wendy's' average media sentiment score of 0.48 beat Shake Shack's score of 0.35 indicating that Shake Shack is being referred to more favorably in the news media.
Wendy's presently has a consensus target price of $22.42, suggesting a potential upside of 15.39%. Shake Shack has a consensus target price of $98.24, suggesting a potential downside of 6.53%. Given Shake Shack's higher probable upside, research 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.
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 51.83% of users gave Shake Shack an outperform vote.
Summary
Wendy's beats Shake Shack on 11 of the 19 factors compared between the two stocks.
Get Shake Shack News Delivered to You Automatically
Sign up to receive the latest news and ratings for SHAK and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding SHAK 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 NYSE 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.
Shake Shack Competitors List
Related Companies and Tools
