Financial Contrast: Biglari (NYSE:BH.A) vs. CAVA Group (NYSE:CAVA)

CAVA Group (NYSE:CAVA) and Biglari (NYSE:BH.A) are both mid-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

This table compares CAVA Group and Biglari’s 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%
Biglari	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$963.71 million	6.25	$130.32 million	$1.16	44.77
Biglari	$362.11 million	10.11	$333.66 million	$146.34	10.98

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

Risk and Volatility

CAVA Group has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500. Comparatively, Biglari has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for CAVA Group and Biglari, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	9	13	2	2.71
Biglari	0	0	0	0	0.00

CAVA Group currently has a consensus price target of $81.00, suggesting a potential upside of 55.97%. Given CAVA Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CAVA Group is more favorable than Biglari.

Institutional and Insider Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 7.7% of Biglari shares are held by institutional investors. 12.1% of CAVA Group shares are held by company insiders. Comparatively, 70.9% of Biglari shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

CAVA Group beats Biglari on 10 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 Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2019, it operated 368 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 48 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers; and operates oil and natural gas properties offshore in the Gulf of Mexico. In addition, it publishes and sells magazines, and related publishing products under the MAXIM and Maxim brand name; and licenses media products and services, as well as is involved in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.