Reviewing CAVA Group (CAVA) and Its Competitors

CAVA Group (NYSE:CAVA) is one of 76 public companies in the “Eating places” industry, but how does it contrast to its peers? We will compare CAVA Group to related companies based on the strength of its valuation, profitability, analyst recommendations, dividends, risk, institutional ownership and earnings.

Institutional & Insider Ownership

73.2% of CAVA Group shares are owned by institutional investors. Comparatively, 64.9% of shares of all “Eating places” companies are owned by institutional investors. 16.0% of shares of all “Eating places” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for CAVA Group and its peers, as reported 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	556	4852	6363	326	2.53

CAVA Group currently has a consensus price target of $81.50, indicating a potential downside of 14.09%. As a group, “Eating places” companies have a potential upside of 19.91%. Given CAVA Group’s peers higher possible upside, analysts clearly believe CAVA Group has less favorable growth aspects than its peers.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
CAVA Group	$728.70 million	$13.28 million	231.40
CAVA Group Competitors	$2.18 billion	$248.48 million	24.48

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

Profitability

This table compares CAVA Group and its peers’ 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	-8.35%	-122.28%	-5.02%

Summary

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

About CAVA Group

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.