Reviewing CAVA Group (NYSE:CAVA) & Dutch Bros (NYSE:BROS)

Dutch Bros (NYSE:BROS) and CAVA Group (NYSE:CAVA) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

85.5% of Dutch Bros shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. 42.4% of Dutch Bros shares are owned by insiders. Comparatively, 6.8% of CAVA Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	3.94%	8.86%	2.65%
CAVA Group	12.98%	9.83%	5.75%

Earnings and Valuation

This table compares Dutch Bros and CAVA Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.45 billion	6.46	$35.26 million	$0.47	121.24
CAVA Group	$1.08 billion	6.81	$130.32 million	$1.19	53.45

CAVA Group has lower revenue, but higher earnings than Dutch Bros. CAVA Group is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Dutch Bros has a beta of 2.55, suggesting that its stock price is 155% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 2.5, suggesting that its stock price is 150% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dutch Bros and CAVA Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	3	16	3	3.00
CAVA Group	0	9	11	1	2.62

Dutch Bros currently has a consensus price target of $77.82, suggesting a potential upside of 36.58%. CAVA Group has a consensus price target of $93.74, suggesting a potential upside of 47.37%. Given CAVA Group’s higher probable upside, analysts clearly believe CAVA Group is more favorable than Dutch Bros.

Summary

Dutch Bros beats CAVA Group on 8 of the 15 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

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.