Dutch Bros (NYSE:BROS – Get Free Report) and Wingstop (NASDAQ:WING – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation 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 | 4.91% | 10.01% | 2.95% |
| Wingstop | 16.03% | -15.80% | 18.12% |
Earnings & Valuation
This table compares Dutch Bros and Wingstop”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dutch Bros | $1.64 billion | 3.61 | $79.84 million | $0.78 | 43.35 |
| Wingstop | $696.85 million | 6.34 | $174.27 million | $4.26 | 38.33 |
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.
Analyst Ratings
This is a summary of recent ratings and price targets for Dutch Bros and Wingstop, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dutch Bros | 0 | 4 | 20 | 2 | 2.92 |
| Wingstop | 1 | 5 | 21 | 1 | 2.79 |
Dutch Bros presently has a consensus price target of $61.62, indicating a potential upside of 82.27%. Wingstop has a consensus price target of $219.56, indicating a potential upside of 34.47%. Given Dutch Bros’ stronger consensus rating and higher probable upside, equities analysts clearly believe Dutch Bros is more favorable than Wingstop.
Institutional & Insider Ownership
85.5% of Dutch Bros shares are owned by institutional investors. 38.9% of Dutch Bros shares are owned by company insiders. Comparatively, 0.5% of Wingstop shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Dutch Bros has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, Wingstop has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.
Summary
Dutch Bros beats Wingstop on 9 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.
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