Reviewing Brinker International (NYSE:EAT) & CAVA Group (NYSE:CAVA)

Brinker International (NYSE:EAT) and CAVA Group (NYSE:CAVA) are both mid-cap consumer cyclical companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Valuation & Earnings

This table compares Brinker International and CAVA Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brinker International	$4.13 billion	0.52	$102.60 million	$3.41	14.16
CAVA Group	$728.70 million	9.79	$13.28 million	N/A	N/A

Brinker International has higher revenue and earnings than CAVA Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brinker International	3.63%	-113.41%	7.07%
CAVA Group	1.82%	4.28%	1.50%

Insider and Institutional Ownership

73.2% of CAVA Group shares are owned by institutional investors. 1.5% of Brinker International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Brinker International and CAVA Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brinker International	3	9	4	1	2.18
CAVA Group	0	4	10	0	2.71

Brinker International presently has a consensus target price of $44.19, suggesting a potential downside of 8.46%. CAVA Group has a consensus target price of $60.42, suggesting a potential downside of 3.47%. Given CAVA Group’s stronger consensus rating and higher possible upside, analysts plainly believe CAVA Group is more favorable than Brinker International.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

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.