CAVA Group (NYSE:CAVA – Get Free Report) and Papa John’s International (NASDAQ:PZZA – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Volatility & Risk
CAVA Group has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Profitability
This table compares CAVA Group and Papa John’s International’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% |
| Papa John’s International | 1.34% | -10.98% | 5.68% |
Institutional & Insider Ownership
Earnings & Valuation
This table compares CAVA Group and Papa John’s International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAVA Group | $1.18 billion | 5.19 | $63.74 million | $0.55 | 95.31 |
| Papa John’s International | $2.05 billion | 0.32 | $30.53 million | $0.79 | 24.90 |
CAVA Group has higher earnings, but lower revenue than Papa John’s International. Papa John’s International is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for CAVA Group and Papa John’s International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAVA Group | 0 | 10 | 17 | 1 | 2.68 |
| Papa John’s International | 3 | 6 | 0 | 0 | 1.67 |
CAVA Group presently has a consensus price target of $88.88, suggesting a potential upside of 69.56%. Papa John’s International has a consensus price target of $32.00, suggesting a potential upside of 62.68%. Given CAVA Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe CAVA Group is more favorable than Papa John’s International.
Summary
CAVA Group beats Papa John’s International on 12 of the 15 factors compared between the two stocks.
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 Papa John’s International
Papa John’s International, Inc. engages in the operation and franchise of pizza delivery and carryout restaurants. It operates through the following segments: Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, International Operations, and All Others. The Domestic Company-Owned Restaurants segment consists of retail sales of pizza and side items, breadsticks, cheese sticks, chicken poppers and wings, dessert items, and canned and bottled beverages. The North America Franchising segment involves the offering of sales and support activities, development rights, and collection of royalties from franchisees located in the United States and Canada. The North America Commissaries segment includes the eleven full-service regional dough production and distribution and quality control centers. The International Operations segment represents all restaurant operations outside of the United States and Canada. The All Others segment focuses on franchise contributions to marketing funds and sale, company-owned and franchised restaurants, information systems and related services used in restaurant operations, point-of-sale system, online and other technology-based ordering platforms, printing, and promotional items. The company was founded by John H. Schnatter in 1984 and is headquartered in Louisville, KY.
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