Red Robin Gourmet Burgers (NASDAQ:RRGB – Get Free Report) and CAVA Group (NYSE:CAVA – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Volatility and Risk
Red Robin Gourmet Burgers has a beta of 2.68, suggesting that its share price is 168% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 2.93, suggesting that its share price is 193% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Red Robin Gourmet Burgers and CAVA Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Red Robin Gourmet Burgers | 0 | 0 | 3 | 0 | 3.00 |
| CAVA Group | 0 | 8 | 8 | 0 | 2.50 |
Insider and Institutional Ownership
84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. 3.2% of Red Robin Gourmet Burgers shares are owned by insiders. Comparatively, 12.1% of CAVA Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Red Robin Gourmet Burgers and CAVA Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Red Robin Gourmet Burgers | $1.30 billion | 0.07 | -$21.23 million | ($3.29) | -1.70 |
| CAVA Group | $728.70 million | 23.72 | $13.28 million | $0.46 | 328.00 |
CAVA Group has lower revenue, but higher earnings than Red Robin Gourmet Burgers. Red Robin Gourmet Burgers is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Red Robin Gourmet Burgers and CAVA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Red Robin Gourmet Burgers | -4.05% | N/A | -6.79% |
| CAVA Group | 5.88% | 9.10% | 5.24% |
Summary
CAVA Group beats Red Robin Gourmet Burgers on 10 of the 14 factors compared between the two stocks.
About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.
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.
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