Yum China Holdings (NYSE: YUMC) is one of 23 public companies in the “Quick Service Restaurants” industry, but how does it compare to its rivals? We will compare Yum China Holdings to related companies based on the strength of its profitability, risk, dividends, earnings, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Yum China Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yum China Holdings 8.43% 21.35% 14.21%
Yum China Holdings Competitors 7.22% 16.78% 10.21%

Institutional and Insider Ownership

77.9% of Yum China Holdings shares are held by institutional investors. Comparatively, 78.2% of shares of all “Quick Service Restaurants” companies are held by institutional investors. 0.2% of Yum China Holdings shares are held by insiders. Comparatively, 15.1% of shares of all “Quick Service Restaurants” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Yum China Holdings and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yum China Holdings 1 3 8 0 2.58
Yum China Holdings Competitors 256 1402 1703 81 2.47

Yum China Holdings currently has a consensus target price of $43.21, indicating a potential upside of 2.98%. As a group, “Quick Service Restaurants” companies have a potential upside of 9.94%. Given Yum China Holdings’ rivals higher possible upside, analysts plainly believe Yum China Holdings has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Yum China Holdings and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Yum China Holdings $6.75 billion $502.00 million 28.54
Yum China Holdings Competitors $3.20 billion $441.15 million 140.77

Yum China Holdings has higher revenue and earnings than its rivals. Yum China Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Yum China Holdings beats its rivals on 7 of the 12 factors compared.

Yum China Holdings Company Profile

Yum China Holdings, Inc. is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts. The Company’s restaurants in each of its concept offer consumers the ability to dine in and/or carry out food. In addition, KFC, Pizza Hut Casual Dining, Pizza Hut Home Service and East Dawning offer delivery service. KFC is the quick-service restaurant (QSR) brand. Pizza Hut Casual Dining is the casual dining restaurant (CDR) brand. As of December 31, 2016, the Company had over 360 Pizza Hut Home Service units in over 50 cities in China. The Little Sheep concept specializes in Hot Pot cooking. East Dawning is a Chinese food QSR brand. Taco Bell is a QSR brand specializing in Mexican-style food.

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