Pinstripes (NYSE:PNST) and Wendy’s (NASDAQ:WEN) Financial Survey

Pinstripes (NYSE:PNST) and Wendy’s (NASDAQ:WEN) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

56.8% of Pinstripes shares are owned by institutional investors. Comparatively, 86.0% of Wendy’s shares are owned by institutional investors. 22.8% of Pinstripes shares are owned by insiders. Comparatively, 17.1% of Wendy’s shares are owned 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 recommmendations for Pinstripes and Wendy’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinstripes	0	0	3	0	3.00
Wendy’s	0	13	3	0	2.19

Pinstripes currently has a consensus target price of $6.00, suggesting a potential upside of 124.72%. Wendy’s has a consensus target price of $22.06, suggesting a potential upside of 24.12%. Given Pinstripes’ stronger consensus rating and higher possible upside, research analysts clearly believe Pinstripes is more favorable than Wendy’s.

Profitability

This table compares Pinstripes and Wendy’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinstripes	N/A	N/A	-8.99%
Wendy’s	9.44%	62.68%	3.99%

Valuation and Earnings

This table compares Pinstripes and Wendy’s’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinstripes	N/A	N/A	N/A	N/A	N/A
Wendy’s	$2.18 billion	1.67	$204.44 million	$0.99	17.95

Wendy’s has higher revenue and earnings than Pinstripes.

Risk and Volatility

Pinstripes has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500. Comparatively, Wendy’s has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Summary

Wendy’s beats Pinstripes on 6 of the 9 factors compared between the two stocks.

About Pinstripes

Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.

About Wendy’s

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. It owns and leases real estate properties. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.