Critical Analysis: CAVA Group (NYSE:CAVA) versus Noble Roman’s (OTCMKTS:NROM)

CAVA Group (NYSE:CAVA) and Noble Roman’s (OTCMKTS:NROM) are both consumer cyclical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for CAVA Group and Noble Roman’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	3	10	0	2.77
Noble Roman’s	0	0	0	0	N/A

CAVA Group currently has a consensus price target of $59.82, indicating a potential downside of 6.17%. Given CAVA Group’s higher probable upside, equities research analysts plainly believe CAVA Group is more favorable than Noble Roman’s.

Insider & Institutional Ownership

73.2% of CAVA Group shares are owned by institutional investors. 30.1% of Noble Roman’s shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares CAVA Group and Noble Roman’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	$728.70 million	9.97	$13.28 million	N/A	N/A
Noble Roman’s	$14.45 million	0.68	-$1.06 million	($0.03)	-14.66

CAVA Group has higher revenue and earnings than Noble Roman’s.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAVA Group	1.82%	4.28%	1.50%
Noble Roman’s	-3.55%	-19.79%	-2.91%

Summary

CAVA Group beats Noble Roman’s on 9 of the 10 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 Noble Roman’s

Noble Roman's, Inc. sells and services franchises, and licenses and operates foodservice locations for stand-alone restaurants and non-traditional foodservice operations. The company franchises, licenses, and operates foodservice locations under the Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs trade names, which provide breadsticks and cheesy stix with dip, pizza, pasta, salads, wings, baked sandwiches, and other related breakfast products, as well as a selection of desserts. The company was incorporated in 1972 and is headquartered in Indianapolis, Indiana.