CAVA Group (NYSE:CAVA – Get Free Report) and Red Robin Gourmet Burgers (NASDAQ:RRGB – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for CAVA Group and Red Robin Gourmet Burgers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAVA Group | 0 | 8 | 8 | 0 | 2.50 |
| Red Robin Gourmet Burgers | 0 | 0 | 3 | 0 | 3.00 |
CAVA Group currently has a consensus price target of $143.80, suggesting a potential upside of 14.73%. Red Robin Gourmet Burgers has a consensus price target of $14.50, suggesting a potential upside of 184.31%. Given Red Robin Gourmet Burgers’ stronger consensus rating and higher probable upside, analysts plainly believe Red Robin Gourmet Burgers is more favorable than CAVA Group.
Risk & Volatility
Profitability
This table compares CAVA Group and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CAVA Group | 5.88% | 9.10% | 5.24% |
| Red Robin Gourmet Burgers | -4.05% | N/A | -6.79% |
Insider and Institutional Ownership
73.2% of CAVA Group shares are held by institutional investors. Comparatively, 84.0% of Red Robin Gourmet Burgers shares are held by institutional investors. 12.1% of CAVA Group shares are held by insiders. Comparatively, 3.2% of Red Robin Gourmet Burgers shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares CAVA Group and Red Robin Gourmet Burgers”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAVA Group | $913.49 million | 15.72 | $13.28 million | $0.46 | 272.48 |
| Red Robin Gourmet Burgers | $1.27 billion | 0.06 | -$21.23 million | ($3.29) | -1.55 |
CAVA Group has higher earnings, but lower revenue 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.
Summary
CAVA Group beats Red Robin Gourmet Burgers 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 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.
Receive News & Ratings for CAVA Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CAVA Group and related companies with MarketBeat.com's FREE daily email newsletter.
