Comparing CAVA Group (NYSE:CAVA) & Noodles & Company (NASDAQ:NDLS)

Noodles & Company (NASDAQ:NDLS) and CAVA Group (NYSE:CAVA) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Noodles & Company and CAVA Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noodles & Company	0	0	2	0	3.00
CAVA Group	0	8	8	0	2.50

Noodles & Company presently has a consensus price target of $3.00, indicating a potential upside of 87.50%. CAVA Group has a consensus price target of $142.13, indicating a potential upside of 1.02%. Given Noodles & Company’s stronger consensus rating and higher probable upside, equities analysts clearly believe Noodles & Company is more favorable than CAVA Group.

Risk & Volatility

Noodles & Company has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.25, suggesting that its share price is 225% more volatile than the S&P 500.

Profitability

This table compares Noodles & Company and CAVA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noodles & Company	-6.59%	-108.23%	-4.78%
CAVA Group	5.88%	9.10%	5.24%

Valuation and Earnings

This table compares Noodles & Company and CAVA Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noodles & Company	$495.82 million	0.15	-$9.86 million	($0.73)	-2.19
CAVA Group	$728.70 million	22.12	$13.28 million	$0.46	305.87

CAVA Group has higher revenue and earnings than Noodles & Company. Noodles & Company is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

65.7% of Noodles & Company shares are held by institutional investors. Comparatively, 73.2% of CAVA Group shares are held by institutional investors. 2.9% of Noodles & Company shares are held by insiders. Comparatively, 12.1% of CAVA Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

CAVA Group beats Noodles & Company on 12 of the 14 factors compared between the two stocks.

About Noodles & Company

Noodles & Co. engages in the business of development and operation of fast-casual restaurants that serve noodle and pasta dishes, soups, salads, and appetizers. The firm also offers pleasant dining, pick-up, and delivery experiences by quickly preparing fresh food with friendly service. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.

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.