Chipotle Mexican Grill (NYSE:CMG) versus CAVA Group (NYSE:CAVA) Head-To-Head Contrast

Chipotle Mexican Grill (NYSE:CMG) and CAVA Group (NYSE:CAVA) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Chipotle Mexican Grill and CAVA Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chipotle Mexican Grill	$11.49 billion	5.94	$1.53 billion	$1.13	44.84
CAVA Group	$1.04 billion	9.31	$13.28 million	$1.20	69.52

Chipotle Mexican Grill has higher revenue and earnings than CAVA Group. Chipotle Mexican Grill is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Chipotle Mexican Grill and CAVA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chipotle Mexican Grill	13.56%	42.92%	17.32%
CAVA Group	5.88%	9.10%	5.24%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Chipotle Mexican Grill and CAVA Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chipotle Mexican Grill	0	8	19	1	2.75
CAVA Group	0	5	12	0	2.71

Chipotle Mexican Grill currently has a consensus target price of $61.74, indicating a potential upside of 21.85%. CAVA Group has a consensus target price of $123.00, indicating a potential upside of 47.44%. Given CAVA Group’s higher probable upside, analysts plainly believe CAVA Group is more favorable than Chipotle Mexican Grill.

Insider and Institutional Ownership

91.3% of Chipotle Mexican Grill shares are held by institutional investors. Comparatively, 73.2% of CAVA Group shares are held by institutional investors. 0.8% of Chipotle Mexican Grill shares are held by company insiders. Comparatively, 6.8% of CAVA Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Chipotle Mexican Grill has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.28, meaning that its share price is 228% more volatile than the S&P 500.

Summary

Chipotle Mexican Grill beats CAVA Group on 9 of the 15 factors compared between the two stocks.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.

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.