Noodles & Company (NASDAQ:NDLS – Get Free Report) and CAVA Group (NYSE:CAVA – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider and Institutional Ownership
65.7% of Noodles & Company shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. 2.9% of Noodles & Company shares are owned by insiders. Comparatively, 12.1% 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.
Analyst Recommendations
This is a breakdown of current ratings for Noodles & Company and CAVA Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noodles & Company | 0 | 0 | 2 | 0 | 3.00 |
| CAVA Group | 0 | 8 | 8 | 0 | 2.50 |
Profitability
This table compares Noodles & Company and CAVA Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noodles & Company | -6.59% | -108.23% | -4.78% |
| CAVA Group | 5.88% | 9.10% | 5.24% |
Risk and Volatility
Noodles & Company has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.25, indicating that its stock price is 225% more volatile than the S&P 500.
Earnings and Valuation
This table compares Noodles & Company and CAVA Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noodles & Company | $503.40 million | 0.14 | -$9.86 million | ($0.73) | -2.05 |
| CAVA Group | $913.49 million | 17.35 | $13.28 million | $0.46 | 300.65 |
CAVA Group has higher revenue and earnings than Noodles & Company. Noodles & Company is trading at a lower price-to-earnings ratio than CAVA Group, indicating that it is currently the more affordable of the two stocks.
Summary
CAVA Group beats Noodles & Company on 12 of the 14 factors compared between the two stocks.
About Noodles & Company
Noodles & Co. engages in the business of development and operation of fast-casual restaurants that serve noodle and pasta dishes, soups, salads, and appetizers. The firm also offers pleasant dining, pick-up, and delivery experiences by quickly preparing fresh food with friendly service. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.
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.
Receive News & Ratings for Noodles & Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Noodles & Company and related companies with MarketBeat.com's FREE daily email newsletter.
