Head-To-Head Review: CAVA Group (NYSE:CAVA) vs. BJ’s Restaurants (NASDAQ:BJRI)

CAVA Group (NYSE:CAVA) and BJ’s Restaurants (NASDAQ:BJRI) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Earnings and Valuation

This table compares CAVA Group and BJ’s Restaurants”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$963.71 million	8.23	$130.32 million	$1.16	58.96
BJ’s Restaurants	$1.36 billion	0.65	$16.69 million	$1.34	31.28

CAVA Group has higher earnings, but lower revenue than BJ’s Restaurants. BJ’s Restaurants 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 Ratings

This is a summary of current recommendations and price targets for CAVA Group and BJ’s Restaurants, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	9	15	2	2.73
BJ’s Restaurants	2	4	3	0	2.11

CAVA Group currently has a consensus target price of $82.21, indicating a potential upside of 20.21%. BJ’s Restaurants has a consensus target price of $41.43, indicating a potential downside of 1.17%. Given CAVA Group’s stronger consensus rating and higher possible upside, analysts plainly believe CAVA Group is more favorable than BJ’s Restaurants.

Profitability

This table compares CAVA Group and BJ’s Restaurants’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAVA Group	12.14%	8.88%	5.21%
BJ’s Restaurants	2.23%	12.92%	4.67%

Risk and Volatility

CAVA Group has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, BJ’s Restaurants has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Institutional & Insider Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 100.0% of BJ’s Restaurants shares are held by institutional investors. 6.8% of CAVA Group shares are held by company insiders. Comparatively, 4.3% of BJ’s Restaurants shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

CAVA Group beats BJ’s Restaurants on 11 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 BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.