CAVA Group (CAVA) & Its Peers Critical Survey

CAVA Group (NYSE:CAVA) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare CAVA Group to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Risk & Volatility

CAVA Group has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, CAVA Group’s peers have a beta of 1.63, indicating that their average share price is 63% more volatile than the S&P 500.

Profitability

This table compares CAVA Group and its peers’ 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%
CAVA Group Competitors	2.33%	-40.13%	2.12%

Valuation & Earnings

This table compares CAVA Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CAVA Group	$1.18 billion	$63.74 million	106.71
CAVA Group Competitors	$3.31 billion	$247.14 million	-148.55

CAVA Group’s peers have higher revenue and earnings than CAVA Group. CAVA Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

73.2% of CAVA Group shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 6.7% of CAVA Group shares are owned by company insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for CAVA Group and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	10	17	1	2.68
CAVA Group Competitors	3789	17180	25454	901	2.50

CAVA Group presently has a consensus target price of $86.81, suggesting a potential upside of 47.91%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 60.52%. Given CAVA Group’s peers higher possible upside, analysts plainly believe CAVA Group has less favorable growth aspects than its peers.

Summary

CAVA Group beats its peers on 9 of the 13 factors compared.

CAVA Group Company Profile

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.