Head-To-Head Survey: CAVA Group (NYSE:CAVA) versus BAB (OTCMKTS:BABB)

CAVA Group (NYSE:CAVA) and BAB (OTCMKTS:BABB) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Valuation and Earnings

This table compares CAVA Group and BAB’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	9.62	$13.28 million	N/A	N/A
BAB	$3.51 million	1.61	$470,000.00	$0.07	11.14

CAVA Group has higher revenue and earnings than BAB.

Analyst Ratings

This is a summary of recent recommendations for CAVA Group and BAB, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	4	10	0	2.71
BAB	0	0	0	0	N/A

CAVA Group currently has a consensus price target of $60.42, indicating a potential downside of 1.76%. Given CAVA Group’s higher possible upside, equities research analysts clearly believe CAVA Group is more favorable than BAB.

Institutional and Insider Ownership

73.2% of CAVA Group shares are owned by institutional investors. 33.7% of BAB 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAVA Group	1.82%	4.28%	1.50%
BAB	14.78%	17.10%	12.09%

Summary

CAVA Group beats BAB on 6 of the 10 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 BAB

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.