CAVA Group (NYSE:CAVA – Get Free Report) and BT Brands (NASDAQ:BTBD – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Profitability
This table compares CAVA Group and BT Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CAVA Group | 4.82% | 8.28% | 4.73% |
| BT Brands | -4.57% | -8.99% | -5.45% |
Analyst Ratings
This is a summary of current ratings and target prices for CAVA Group and BT Brands, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAVA Group | 0 | 10 | 16 | 1 | 2.67 |
| BT Brands | 1 | 0 | 0 | 0 | 1.00 |
Risk and Volatility
CAVA Group has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Earnings & Valuation
This table compares CAVA Group and BT Brands”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAVA Group | $1.18 billion | 5.12 | $63.74 million | $0.55 | 93.95 |
| BT Brands | $13.49 million | 0.82 | -$690,000.00 | ($0.09) | -20.00 |
CAVA Group has higher revenue and earnings than BT Brands. BT Brands is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
73.2% of CAVA Group shares are held by institutional investors. Comparatively, 0.4% of BT Brands shares are held by institutional investors. 6.7% of CAVA Group shares are held by insiders. Comparatively, 19.6% of BT Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
CAVA Group beats BT Brands on 14 of the 15 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 BT Brands
BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates Burger Time restaurants located in Minnesota, North Dakota, and South Dakota; and a Dairy Queen franchise in Ham Lake, Minnesota. Its Burger Time restaurants provide various burgers and other food products, such as chicken sandwiches, pulled pork sandwiches, chicken chunks, side dishes, and soft drinks; and Dairy Queen restaurant offers burgers, chicken, sides, ice cream and other desserts, and various beverages. The company was founded in 1987 and is based in West Fargo, North Dakota.
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