Head to Head Review: CAVA Group (CAVA) & The Competition

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
CAVA Group	$728.70 million	$13.28 million	226.15
CAVA Group Competitors	$2.16 billion	$248.48 million	25.06

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.

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	3.75%	5.18%	2.98%
CAVA Group Competitors	-9.01%	-451.74%	-5.28%

Analyst Ratings

This is a summary of recent recommendations for CAVA Group and its peers, as reported 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	556	4847	6357	326	2.53

CAVA Group presently has a consensus target price of $81.50, indicating a potential downside of 12.10%. As a group, “Eating places” companies have a potential upside of 16.98%. Given CAVA Group’s peers higher probable upside, analysts plainly believe CAVA Group has less favorable growth aspects than its peers.

Insider & Institutional Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 64.9% of shares of all “Eating places” companies are held by institutional investors. 16.0% of shares of all “Eating places” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

CAVA Group beats its peers 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.