Yum China Holdings (NYSE: YUMC) is one of 23 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it weigh in compared to its rivals? We will compare Yum China Holdings to similar businesses based on the strength of its valuation, dividends, risk, profitability, analyst recommendations, institutional ownership and earnings.

Valuation & Earnings

This table compares Yum China Holdings and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Yum China Holdings $6.75 billion $502.00 million 28.91
Yum China Holdings Competitors $3.20 billion $441.15 million 142.05

Yum China Holdings has higher revenue and earnings than its rivals. Yum China Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

78.9% of Yum China Holdings shares are held by institutional investors. Comparatively, 79.3% of shares of all “Quick Service Restaurants” companies are held by institutional investors. 0.2% of Yum China Holdings shares are held by company insiders. Comparatively, 15.2% of shares of all “Quick Service Restaurants” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Yum China Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yum China Holdings 8.43% 21.35% 14.21%
Yum China Holdings Competitors 6.62% 18.56% 9.75%

Analyst Recommendations

This is a summary of current ratings and target prices for Yum China Holdings and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yum China Holdings 1 3 8 0 2.58
Yum China Holdings Competitors 256 1404 1703 81 2.47

Yum China Holdings presently has a consensus target price of $43.21, suggesting a potential upside of 1.67%. As a group, “Quick Service Restaurants” companies have a potential upside of 9.57%. Given Yum China Holdings’ rivals higher possible upside, analysts clearly believe Yum China Holdings has less favorable growth aspects than its rivals.

Summary

Yum China Holdings beats its rivals on 7 of the 12 factors compared.

About Yum China Holdings

Yum China Holdings, Inc. is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts. The Company’s restaurants in each of its concept offer consumers the ability to dine in and/or carry out food. In addition, KFC, Pizza Hut Casual Dining, Pizza Hut Home Service and East Dawning offer delivery service. KFC is the quick-service restaurant (QSR) brand. Pizza Hut Casual Dining is the casual dining restaurant (CDR) brand. As of December 31, 2016, the Company had over 360 Pizza Hut Home Service units in over 50 cities in China. The Little Sheep concept specializes in Hot Pot cooking. East Dawning is a Chinese food QSR brand. Taco Bell is a QSR brand specializing in Mexican-style food.

Receive News & Stock Ratings for Yum China Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Yum China Holdings Inc. and related stocks with our FREE daily email newsletter.