Analyzing CAVA Group (CAVA) and The Competition

CAVA Group (NYSE:CAVAGet Free Report) is one of 75 publicly-traded companies in the “Eating places” industry, but how does it contrast to its competitors? We will compare CAVA Group to similar businesses based on the strength of its valuation, profitability, institutional ownership, earnings, risk, analyst recommendations and dividends.

Profitability

This table compares CAVA Group and its competitors’ 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 -8.88% -451.00% -5.21%

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
CAVA Group $728.70 million $13.28 million 207.41
CAVA Group Competitors $2.15 billion $247.82 million 27.59

CAVA Group’s competitors have higher revenue and earnings than CAVA Group. CAVA Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider 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 insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for CAVA Group and its competitors, as provided 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 553 4826 6305 321 2.53

CAVA Group presently has a consensus target price of $81.08, suggesting a potential downside of 4.65%. As a group, “Eating places” companies have a potential upside of 6.06%. Given CAVA Group’s competitors higher possible upside, analysts plainly believe CAVA Group has less favorable growth aspects than its competitors.

Summary

CAVA Group beats its competitors on 7 of the 12 factors compared.

About CAVA Group

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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.

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