CAVA Group (CAVA) & The Competition Critical Review

CAVA Group (NYSE:CAVA) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its rivals? We will compare CAVA Group to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Volatility & Risk

CAVA Group has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, CAVA Group’s rivals have a beta of 1.61, meaning that their average stock price is 61% more volatile than the S&P 500.

Valuation and Earnings

This table compares CAVA Group and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CAVA Group	$1.18 billion	$63.74 million	94.36
CAVA Group Competitors	$3.42 billion	$247.14 million	-163.57

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.

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	4.82%	8.28%	4.73%
CAVA Group Competitors	2.25%	-42.24%	2.07%

Institutional and Insider Ownership

73.2% of CAVA Group shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 6.7% of CAVA Group shares are owned by insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CAVA Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	10	17	1	2.68
CAVA Group Competitors	3774	17131	25355	898	2.50

CAVA Group presently has a consensus price target of $87.35, indicating a potential upside of 68.31%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 63.56%. Given CAVA Group’s stronger consensus rating and higher possible upside, research analysts clearly believe CAVA Group is more favorable than its rivals.

Summary

CAVA Group beats its rivals on 10 of the 13 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.