Wendy’s (NASDAQ:WEN – Get Free Report) and Pinstripes (NYSE:PNST – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Profitability
This table compares Wendy’s and Pinstripes’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Wendy’s | 9.37% | 56.24% | 3.87% |
Pinstripes | N/A | N/A | -8.99% |
Insider and Institutional Ownership
86.0% of Wendy’s shares are held by institutional investors. Comparatively, 56.8% of Pinstripes shares are held by institutional investors. 17.1% of Wendy’s shares are held by insiders. Comparatively, 22.8% of Pinstripes shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Wendy’s and Pinstripes, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Wendy’s | 0 | 13 | 4 | 0 | 2.24 |
Pinstripes | 0 | 0 | 3 | 0 | 3.00 |
Wendy’s currently has a consensus price target of $22.60, suggesting a potential upside of 13.34%. Pinstripes has a consensus price target of $6.00, suggesting a potential upside of 110.53%. Given Pinstripes’ stronger consensus rating and higher possible upside, analysts plainly believe Pinstripes is more favorable than Wendy’s.
Earnings and Valuation
This table compares Wendy’s and Pinstripes’ revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Wendy’s | $2.18 billion | 1.88 | $204.44 million | $0.98 | 20.35 |
Pinstripes | N/A | N/A | N/A | N/A | N/A |
Wendy’s has higher revenue and earnings than Pinstripes.
Summary
Wendy’s beats Pinstripes on 7 of the 10 factors compared between the two stocks.
About Wendy’s
The Wendy's Company, together with its subsidiaries, operates as a quick-service restaurant company in the United States and internationally. It operates through Wendy's U.S., Wendy's International, and Global Real Estate & Development segments. The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches. It owns and leases real estate properties. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1969 and is headquartered in Dublin, Ohio.
About Pinstripes
Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.
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