SHAK vs. WEN, ABG, AAP, CPRI, SIG, AEO, GPI, GME, URBN, and GMS
Should you be buying Shake Shack stock or one of its competitors? The main competitors of Shake Shack include Wendy's (WEN), Asbury Automotive Group (ABG), Advance Auto Parts (AAP), Capri (CPRI), Signet Jewelers (SIG), American Eagle Outfitters (AEO), Group 1 Automotive (GPI), GameStop (GME), Urban Outfitters (URBN), and GMS (GMS). 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 compare the two companies based on the strength of their profitability, media sentiment, institutional ownership, community ranking, risk, valuation, dividends, earnings and analyst recommendations.
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 51.78% of users gave Shake Shack an outperform vote.
Shake Shack currently has a consensus target price of $98.35, indicating a potential downside of 0.81%. Wendy's has a consensus target price of $22.06, indicating a potential upside of 19.93%. Given Wendy's' higher probable upside, analysts plainly believe Wendy's is more favorable than Shake Shack.
Wendy's has a net margin of 9.44% compared to Shake Shack's net margin of 2.08%. Wendy's' return on equity of 62.68% beat Shake Shack's return on equity.
86.1% of Shake Shack shares are owned by institutional investors. Comparatively, 86.0% of Wendy's shares are owned by institutional investors. 10.1% of Shake Shack shares are owned by company insiders. Comparatively, 17.1% of Wendy's shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
In the previous week, Wendy's had 8 more articles in the media than Shake Shack. MarketBeat recorded 27 mentions for Wendy's and 19 mentions for Shake Shack. Wendy's' average media sentiment score of 0.56 beat Shake Shack's score of 0.32 indicating that Wendy's is being referred to more favorably in the news media.
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.
Shake Shack has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Wendy's has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.
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 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.
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