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

Analyst Recommendations

This is a summary of current recommendations for Wingstop and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wingstop 0 3 5 1 2.78
Wingstop Competitors 242 1340 1650 81 2.47

Wingstop currently has a consensus price target of $34.89, indicating a potential upside of 7.05%. As a group, “Quick Service Restaurants” companies have a potential upside of 6.76%. Given Wingstop’s stronger consensus rating and higher possible upside, research analysts clearly believe Wingstop is more favorable than its competitors.

Volatility & Risk

Wingstop has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Wingstop’s competitors have a beta of 0.53, suggesting that their average stock price is 47% less volatile than the S&P 500.

Insider & Institutional Ownership

79.8% of shares of all “Quick Service Restaurants” companies are owned by institutional investors. 1.8% of Wingstop shares are owned by company insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are owned 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.

Earnings and Valuation

This table compares Wingstop and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Wingstop $97.80 million $35.13 million 50.92
Wingstop Competitors $3.06 billion $846.52 million 29.81

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

Profitability

This table compares Wingstop and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wingstop 19.28% -28.04% 17.56%
Wingstop Competitors 6.90% 12.59% 9.54%

Dividends

Wingstop pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. Wingstop pays out 10.9% of its earnings in the form of a dividend. As a group, “Quick Service Restaurants” companies pay a dividend yield of 1.5% and pay out 43.1% of their earnings in the form of a dividend.

Summary

Wingstop beats its competitors on 9 of the 15 factors compared.

Wingstop Company Profile

Wingstop Inc. is franchisor and operator of restaurants that specializes in cooked-to-order, hand-sauced and tossed chicken wings. The Company operates through two segments: Franchise and Company. As of December 31, 2016, the Company offers its guests 11 flavors on bone-in and boneless chicken wings paired with hand-cut, seasoned fries and sides. It is a casual chicken wings-focused restaurant chain with various concepts, which include wings as add-on menu items or focus on wings in a bar or sports-centric setting. The flavors include Atomic, Mango Habanero, Cajun, Original Hot, Louisiana Rub, Mild, Hickory Smoked BBQ, Lemon Pepper, Garlic Parmesan, Hawaiian and Teriyaki. It offers various order options, including eat-in, to go, individual, combo meals and family packs. The Company maintains Website hosting, and manages the development and maintenance of the mobile Wingstop application. It markets Wingstop products, services and restaurants through the Website, www.wingstop.com.

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