Wingstop (NASDAQ:WING) and Dutch Bros (NYSE:BROS) Head-To-Head Comparison

Dutch Bros (NYSE:BROS) and Wingstop (NASDAQ:WING) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Profitability

This table compares Dutch Bros and Wingstop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.87%	9.56%	2.82%
Wingstop	25.01%	-16.12%	16.24%

Risk and Volatility

Dutch Bros has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, Wingstop has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Dutch Bros and Wingstop, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	3	20	1	2.92
Wingstop	1	5	26	3	2.89

Dutch Bros presently has a consensus price target of $75.95, indicating a potential upside of 50.18%. Wingstop has a consensus price target of $326.86, indicating a potential upside of 125.62%. Given Wingstop’s higher probable upside, analysts plainly believe Wingstop is more favorable than Dutch Bros.

Earnings & Valuation

This table compares Dutch Bros and Wingstop”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.64 billion	5.08	$79.84 million	$0.64	79.03
Wingstop	$696.85 million	5.68	$174.27 million	$6.18	23.44

Wingstop has lower revenue, but higher earnings than Dutch Bros. Wingstop is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

85.5% of Dutch Bros shares are owned by institutional investors. 42.4% of Dutch Bros shares are owned by company insiders. Comparatively, 0.7% of Wingstop shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Wingstop beats Dutch Bros on 8 of the 15 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

About Wingstop

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.