Cheesecake Factory (CAKE) and Its Peers Head-To-Head Analysis

Cheesecake Factory (NASDAQ:CAKE) is one of 383 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare Cheesecake Factory to related companies based on the strength of its analyst recommendations, dividends, profitability, valuation, institutional ownership, risk and earnings.

Dividends

Cheesecake Factory pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Cheesecake Factory pays out 28.4% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.8% of their earnings in the form of a dividend.

Risk & Volatility

Cheesecake Factory has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Cheesecake Factory’s competitors have a beta of 1.66, suggesting that their average share price is 66% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cheesecake Factory and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cheesecake Factory	2	12	5	1	2.25
Cheesecake Factory Competitors	3839	17331	25651	910	2.50

Cheesecake Factory currently has a consensus target price of $95.47, indicating a potential downside of 12.50%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 53.22%. Given Cheesecake Factory’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Cheesecake Factory has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

94.5% of Cheesecake Factory shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 8.0% of Cheesecake Factory shares are owned by company insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cheesecake Factory	5.20%	44.53%	6.66%
Cheesecake Factory Competitors	8.44%	-42.19%	1.97%

Earnings & Valuation

This table compares Cheesecake Factory and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cheesecake Factory	$3.75 billion	$148.43 million	25.86
Cheesecake Factory Competitors	$3.43 billion	$250.18 million	-160.79

Cheesecake Factory has higher revenue, but lower earnings than its competitors. Cheesecake Factory 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.

Summary

Cheesecake Factory competitors beat Cheesecake Factory on 8 of the 15 factors compared.

About Cheesecake Factory

The Cheesecake Factory Incorporated (NASDAQ: CAKE) is a restaurant company that operates and licenses restaurants under several brands. Its portfolio includes The Cheesecake Factory, North Italia and restaurants developed by Fox Restaurant Concepts, such as Flower Child and Culinary Dropout. The company’s restaurants serve a range of dishes, including appetizers, entrees and desserts. Its bakery division produces cheesecakes and other baked goods for its restaurants and for foodservice and retail customers.