Chipotle Mexican Grill (NYSE: CMG) is one of 22 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it contrast to its rivals? We will compare Chipotle Mexican Grill to related businesses based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, risk, earnings and dividends.

Institutional and Insider Ownership

90.1% of Chipotle Mexican Grill shares are owned by institutional investors. Comparatively, 79.8% of shares of all “Quick Service Restaurants” companies are owned by institutional investors. 2.0% of Chipotle Mexican Grill shares are owned by insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Chipotle Mexican Grill and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chipotle Mexican Grill 4 22 9 0 2.14
Chipotle Mexican Grill Competitors 241 1334 1640 81 2.47

Chipotle Mexican Grill presently has a consensus price target of $391.44, suggesting a potential upside of 27.24%. As a group, “Quick Service Restaurants” companies have a potential upside of 4.21%. Given Chipotle Mexican Grill’s higher probable upside, equities analysts plainly believe Chipotle Mexican Grill is more favorable than its rivals.

Earnings & Valuation

This table compares Chipotle Mexican Grill and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Chipotle Mexican Grill $4.31 billion $397.78 million 64.90
Chipotle Mexican Grill Competitors $3.06 billion $846.52 million 29.88

Chipotle Mexican Grill has higher revenue, but lower earnings than its rivals. Chipotle Mexican Grill 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.

Profitability

This table compares Chipotle Mexican Grill and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chipotle Mexican Grill 3.17% 10.65% 7.38%
Chipotle Mexican Grill Competitors 6.87% 12.55% 9.51%

Risk and Volatility

Chipotle Mexican Grill has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Chipotle Mexican Grill’s rivals have a beta of 0.53, suggesting that their average stock price is 47% less volatile than the S&P 500.

Summary

Chipotle Mexican Grill rivals beat Chipotle Mexican Grill on 8 of the 13 factors compared.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc. (Chipotle), together with its subsidiaries, operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company managed its operations and restaurants based on 11 regions. As of December 31, 2016, the Company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and it also had 23 restaurants in operation in other non-Chipotle concepts. As of December 31, 2016, 29 of its restaurants were located outside of the United States, with 17 in Canada, six in the United Kingdom, five in France and one in Frankfurt, Germany. The Company sells gift cards, which do not have an expiration date. The Company categorizes its restaurants as end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other.

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