Financial Analysis: CAVA Group (CAVA) and Its Peers

CAVA Group (NYSE:CAVA) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its peers? We will compare CAVA Group to similar companies based on the strength of its earnings, profitability, analyst recommendations, risk, dividends, valuation and institutional ownership.

Volatility & Risk

CAVA Group has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, CAVA Group’s peers have a beta of 1.62, meaning that their average share price is 62% more volatile than the S&P 500.

Insider and Institutional Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 6.7% of CAVA Group shares are held by company insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CAVA Group and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	10	17	1	2.68
CAVA Group Competitors	3793	17203	25474	901	2.50

CAVA Group currently has a consensus target price of $86.81, suggesting a potential upside of 43.55%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.66%. Given CAVA Group’s peers higher possible upside, analysts plainly believe CAVA Group has less favorable growth aspects than its peers.

Profitability

This table compares CAVA Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAVA Group	4.82%	8.28%	4.73%
CAVA Group Competitors	2.30%	-40.19%	2.09%

Valuation & Earnings

This table compares CAVA Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CAVA Group	$1.37 billion	$63.74 million	109.95
CAVA Group Competitors	$3.70 billion	$247.14 million	-141.63

CAVA Group’s peers have higher revenue and earnings than CAVA Group. CAVA Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

CAVA Group beats its peers on 9 of the 13 factors compared.

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.