Analyzing Biglari (NYSE:BH) & CAVA Group (NYSE:CAVA)

CAVA Group (NYSE:CAVA) and Biglari (NYSE:BH) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAVA Group	1.82%	4.28%	1.50%
Biglari	15.04%	9.18%	6.33%

Insider and Institutional Ownership

73.2% of CAVA Group shares are held by institutional investors. Comparatively, 74.3% of Biglari shares are held by institutional investors. 71.4% of Biglari shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$728.70 million	11.80	$13.28 million	N/A	N/A
Biglari	$365.32 million	1.30	$54.95 million	$187.42	1.12

Biglari has lower revenue, but higher earnings than CAVA Group.

Analyst Recommendations

This is a breakdown of current recommendations for CAVA Group and Biglari, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	4	10	0	2.71
Biglari	0	0	0	0	N/A

CAVA Group presently has a consensus price target of $60.42, suggesting a potential downside of 19.86%. Given CAVA Group’s higher probable upside, research analysts clearly believe CAVA Group is more favorable than Biglari.

Summary

Biglari beats CAVA Group on 6 of the 10 factors compared between the two stocks.

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.

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. It owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. The company also engages in underwriting commercial trucking insurance; selling physical damage and non-trucking liability insurance to truckers; and providing property and casualty insurance. In addition, it operates oil and natural gas properties in the Gulf of Mexico; and publishes and sells magazines under the MAXIM brand name. Further, it licenses media products and services; and engages in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.