J d Wetherspoon (OTCMKTS:JDWPY) vs. Wingstop (NASDAQ:WING) Financial Contrast

J d Wetherspoon (OTCMKTS:JDWPY) and Wingstop (NASDAQ:WING) 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, valuation, earnings, dividends, institutional ownership, risk and profitability.

Volatility & Risk

J d Wetherspoon has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Wingstop has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for J d Wetherspoon and Wingstop, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J d Wetherspoon	1	0	0	0	1.00
Wingstop	1	5	25	2	2.85

Wingstop has a consensus target price of $274.82, indicating a potential upside of 91.03%. Given Wingstop’s stronger consensus rating and higher possible upside, analysts clearly believe Wingstop is more favorable than J d Wetherspoon.

Valuation and Earnings

This table compares J d Wetherspoon and Wingstop”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J d Wetherspoon	$2.76 billion	0.36	$88.36 million	N/A	N/A
Wingstop	$696.85 million	5.62	$174.27 million	$4.02	35.79

Wingstop has lower revenue, but higher earnings than J d Wetherspoon.

Profitability

This table compares J d Wetherspoon and Wingstop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J d Wetherspoon	N/A	N/A	N/A
Wingstop	15.77%	-16.22%	17.12%

Dividends

J d Wetherspoon pays an annual dividend of $0.50 per share and has a dividend yield of 1.1%. Wingstop pays an annual dividend of $1.20 per share and has a dividend yield of 0.8%. Wingstop pays out 29.9% of its earnings in the form of a dividend. Wingstop has raised its dividend for 7 consecutive years.

Summary

Wingstop beats J d Wetherspoon on 10 of the 14 factors compared between the two stocks.

About J d Wetherspoon

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. The company was founded in 1979 and is based in Watford, the United Kingdom.

About Wingstop

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.