Critical Comparison: CAVA Group (CAVA) versus Its Rivals

CAVA Group (NYSE:CAVA) is one of 76 publicly-traded companies in the “Eating places” industry, but how does it compare to its rivals? We will compare CAVA Group to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for CAVA Group and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	6	8	0	2.57
CAVA Group Competitors	555	4842	6347	324	2.53

CAVA Group presently has a consensus price target of $81.50, indicating a potential downside of 10.93%. As a group, “Eating places” companies have a potential upside of 5.41%. Given CAVA Group’s rivals higher probable upside, analysts plainly believe CAVA Group has less favorable growth aspects than its rivals.

Profitability

This table compares CAVA Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAVA Group	3.75%	5.18%	2.98%
CAVA Group Competitors	-9.01%	-451.74%	-5.28%

Insider and Institutional Ownership

73.2% of CAVA Group shares are owned by institutional investors. Comparatively, 64.9% of shares of all “Eating places” companies are owned by institutional investors. 16.0% of shares of all “Eating places” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
CAVA Group	$728.70 million	$13.28 million	223.42
CAVA Group Competitors	$2.15 billion	$248.48 million	27.67

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

Summary

CAVA Group beats its rivals on 7 of the 12 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.