Noodles & (NASDAQ: NDLS) is one of 22 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it contrast to its peers? We will compare Noodles & to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.

Profitability

This table compares Noodles & and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noodles & -17.42% -10.25% -2.10%
Noodles & Competitors 6.90% 12.59% 9.54%

Volatility & Risk

Noodles & has a beta of -0.53, suggesting that its stock price is 153% less volatile than the S&P 500. Comparatively, Noodles &’s peers have a beta of 0.53, suggesting that their average stock price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

65.7% of Noodles & shares are owned by institutional investors. Comparatively, 79.8% of shares of all “Quick Service Restaurants” companies are owned by institutional investors. 52.7% of Noodles & shares are owned by insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Noodles & and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noodles & 1 5 1 0 2.00
Noodles & Competitors 241 1331 1636 81 2.47

Noodles & presently has a consensus target price of $4.93, suggesting a potential upside of 9.52%. As a group, “Quick Service Restaurants” companies have a potential upside of 8.79%. Given Noodles &’s higher probable upside, research analysts clearly believe Noodles & is more favorable than its peers.

Earnings and Valuation

This table compares Noodles & and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Noodles & $481.59 million $12.41 million -1.41
Noodles & Competitors $3.06 billion $846.52 million 29.88

Noodles &’s peers have higher revenue and earnings than Noodles &. Noodles & 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.

Summary

Noodles & peers beat Noodles & on 10 of the 12 factors compared.

Noodles & Company Profile

Noodles & Company develops and operates fast casual restaurants. The Company’s menu includes a range of cooked-to-order dishes, including noodles and pasta, soups, salads, sandwiches and appetizers. The Company has approximately 490 restaurants, including 420 Company-owned and 70 franchised locations, across 40 states, the District of Columbia and one Canadian province. The Company offers over 30 globally inspired Asian, Mediterranean and American dishes together on a single menu. The Company offers approximately 10 fresh vegetables and six proteins, including marinated steak, naturally raised pork, chicken, meatballs, shrimp and organic tofu. The Company offers Kids Meals, which includes sides, such as broccoli, carrots, fruit, applesauce and a portion of its housemade rice crispy treat. The Company’s restaurants’ locations include Arizona, California, Colorado, Delaware, New York, North Dakota, Ohio, Texas, Utah, Virginia, Washington and Wisconsin.

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