CAVA Group (NYSE:CAVA – Get Free Report) and Trip.com Group (NASDAQ:TCOM – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
73.2% of CAVA Group shares are held by institutional investors. Comparatively, 35.4% of Trip.com Group shares are held by institutional investors. 6.7% of CAVA Group shares are held by company insiders. Comparatively, 23.0% of Trip.com Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares CAVA Group and Trip.com Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAVA Group | $1.18 billion | 5.08 | $63.74 million | $0.55 | 93.20 |
| Trip.com Group | $8.94 billion | 2.82 | $4.77 billion | $4.85 | 8.00 |
Trip.com Group has higher revenue and earnings than CAVA Group. Trip.com Group is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CAVA Group has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Trip.com Group has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500.
Profitability
This table compares CAVA Group and Trip.com Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CAVA Group | 4.82% | 8.28% | 4.73% |
| Trip.com Group | 36.07% | 16.99% | 10.73% |
Analyst Ratings
This is a summary of recent ratings and target prices for CAVA Group and Trip.com Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAVA Group | 0 | 10 | 17 | 1 | 2.68 |
| Trip.com Group | 2 | 3 | 8 | 1 | 2.57 |
CAVA Group currently has a consensus price target of $88.88, indicating a potential upside of 73.40%. Trip.com Group has a consensus price target of $60.45, indicating a potential upside of 55.87%. Given CAVA Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe CAVA Group is more favorable than Trip.com Group.
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.
About Trip.com Group
Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.
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