Chagee (CHA) & Its Peers Financial Survey

Chagee (NASDAQ:CHA) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its competitors? We will compare Chagee to similar companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Dividends

Chagee pays an annual dividend of $0.87 per share and has a dividend yield of 7.0%. Chagee pays out 86.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.8% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Chagee and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Chagee	$13.14 billion	$167.47 million	12.31
Chagee Competitors	$3.43 billion	$250.18 million	-159.99

Chagee has higher revenue, but lower earnings than its competitors. Chagee is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Chagee and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chagee	10.23%	16.43%	11.39%
Chagee Competitors	8.57%	-41.62%	2.16%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Chagee and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chagee	1	3	3	0	2.29
Chagee Competitors	3819	17310	25630	908	2.50

Chagee currently has a consensus target price of $14.00, indicating a potential upside of 12.63%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.25%. Given Chagee’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Chagee has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

48.7% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Chagee has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Chagee’s competitors have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.

Summary

Chagee competitors beat Chagee on 9 of the 15 factors compared.

Chagee Company Profile

Chagee, also known as 霸王茶姬, is a China-based tea beverage company that develops and sells freshly prepared drinks made with tea. Its menu includes tea lattes and other milk tea and fruit tea beverages, with an emphasis on brewed tea and tea-forward flavors. Founded in 2017 by Zhang Junjie, who serves as the company’s chairman and chief executive officer, Chagee operates a network of branded teahouses. The company serves customers primarily in China and has expanded into selected Southeast Asian markets.