Head-To-Head Survey: Texas Roadhouse (NASDAQ:TXRH) vs. CAVA Group (NYSE:CAVA)

CAVA Group (NYSE:CAVA) and Texas Roadhouse (NASDAQ:TXRH) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAVA Group	5.04%	7.37%	4.25%
Texas Roadhouse	7.47%	30.94%	13.40%

Analyst Recommendations

This is a summary of recent recommendations for CAVA Group and Texas Roadhouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	7	7	0	2.50
Texas Roadhouse	0	12	9	0	2.43

CAVA Group presently has a consensus price target of $111.58, suggesting a potential downside of 13.31%. Texas Roadhouse has a consensus price target of $171.85, suggesting a potential upside of 1.26%. Given Texas Roadhouse’s higher probable upside, analysts plainly believe Texas Roadhouse is more favorable than CAVA Group.

Volatility & Risk

CAVA Group has a beta of 3.34, suggesting that its stock price is 234% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Earnings and Valuation

This table compares CAVA Group and Texas Roadhouse”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$845.22 million	17.37	$13.28 million	$0.41	313.95
Texas Roadhouse	$4.95 billion	2.29	$304.88 million	$4.94	34.35

Texas Roadhouse has higher revenue and earnings than CAVA Group. Texas Roadhouse 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 & Insider Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are held by institutional investors. 0.5% of Texas Roadhouse shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Texas Roadhouse beats CAVA Group on 10 of the 14 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 Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.