Zoe’s Kitchen (NYSE: ZOES) is one of 44 public companies in the “Restaurants & Bars” industry, but how does it weigh in compared to its peers? We will compare Zoe’s Kitchen to related companies based on the strength of its dividends, earnings, institutional ownership, profitability, risk, analyst recommendations and valuation.

Risk and Volatility

Zoe’s Kitchen has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Zoe’s Kitchen’s peers have a beta of 0.67, meaning that their average share price is 33% less volatile than the S&P 500.

Profitability

This table compares Zoe’s Kitchen and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zoe’s Kitchen -0.07% -0.27% -0.16%
Zoe’s Kitchen Competitors 1.76% 12.48% 1.75%

Institutional and Insider Ownership

69.0% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 3.0% of Zoe’s Kitchen shares are owned by insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Zoe’s Kitchen and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Zoe’s Kitchen $294.14 million $22.57 million -631.00
Zoe’s Kitchen Competitors $2.04 billion $349.09 million -4.15

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

Analyst Ratings

This is a summary of recent ratings and price targets for Zoe’s Kitchen and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zoe’s Kitchen 1 6 3 0 2.20
Zoe’s Kitchen Competitors 375 1736 2200 82 2.45

Zoe’s Kitchen currently has a consensus target price of $17.55, suggesting a potential upside of 39.06%. As a group, “Restaurants & Bars” companies have a potential upside of 10.95%. Given Zoe’s Kitchen’s higher probable upside, equities research analysts plainly believe Zoe’s Kitchen is more favorable than its peers.

Summary

Zoe’s Kitchen peers beat Zoe’s Kitchen on 11 of the 12 factors compared.

About Zoe’s Kitchen

Zoe’s Kitchen, Inc. develops and operates fast-casual restaurants serving a menu of fresh, wholesome, Mediterranean-inspired dishes delivered with Southern hospitality. The Company’s menu offers meals made from scratch using produce, proteins and other ingredients, including its appetizers, soups, salads and kabobs. Its food, including both hot and cold items, is suited for catering to a range of business and social occasions. It caters to a range of dietary needs by offering vegetarian, vegan, gluten-free and its calorie conscious, Simply 500 menu selections. Its party packs serve groups of approximately 10 and are each filled with their own combination of fresh fruits, veggies, proteins and grains. The Company serves dishes for various occasions, such as Guilt-Free Girls Night, Game Day Goodies, Shower Sensations and Kids’ Party Pack. As of December 26, 2016, it had operated 201 Company-owned restaurants and three franchise restaurants in 20 states across the United States.

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