Contrasting Pinstripes (NYSE:PNST) & Wendy’s (NASDAQ:WEN)

Pinstripes (NYSE:PNST) and Wendy’s (NASDAQ:WEN) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Pinstripes and Wendy’s, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pinstripes	0	0	3	0	3.00
Wendy’s	0	13	4	0	2.24

Pinstripes presently has a consensus price target of $6.00, indicating a potential upside of 110.53%. Wendy’s has a consensus price target of $22.60, indicating a potential upside of 13.34%. Given Pinstripes’ stronger consensus rating and higher possible upside, analysts plainly believe Pinstripes is more favorable than Wendy’s.

Volatility & Risk

Pinstripes has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, Wendy’s has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Pinstripes and Wendy’s’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinstripes	N/A	N/A	N/A	N/A	N/A
Wendy’s	$2.18 billion	1.88	$204.44 million	$0.99	20.14

Wendy’s has higher revenue and earnings than Pinstripes.

Profitability

This table compares Pinstripes and Wendy’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinstripes	N/A	N/A	-8.99%
Wendy’s	9.44%	62.68%	3.99%

Insider & Institutional Ownership

56.8% of Pinstripes shares are owned by institutional investors. Comparatively, 86.0% of Wendy’s shares are owned by institutional investors. 22.8% of Pinstripes shares are owned by company insiders. Comparatively, 17.1% of Wendy’s shares are owned 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

Wendy’s beats Pinstripes on 7 of the 10 factors compared between the two stocks.

About Pinstripes

Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.

About Wendy’s

The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. It owns and leases real estate properties. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.