Reviewing CAVA Group (NYSE:CAVA) and Bloomin’ Brands (NASDAQ:BLMN)

CAVA Group (NYSE:CAVA) and Bloomin’ Brands (NASDAQ:BLMN) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Profitability

This table compares CAVA Group and Bloomin’ Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAVA Group	N/A	N/A	N/A
Bloomin’ Brands	5.49%	86.88%	8.05%

Institutional and Insider Ownership

61.8% of CAVA Group shares are owned by institutional investors. 4.2% of Bloomin’ Brands shares are owned 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.

Earnings and Valuation

This table compares CAVA Group and Bloomin’ Brands’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$645.17 million	6.24	N/A	N/A	N/A
Bloomin’ Brands	$4.42 billion	0.52	$101.91 million	$2.58	10.31

Bloomin’ Brands has higher revenue and earnings than CAVA Group.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for CAVA Group and Bloomin’ Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	3	6	0	2.67
Bloomin’ Brands	0	8	3	1	2.42

CAVA Group currently has a consensus target price of $49.63, suggesting a potential upside of 40.10%. Bloomin’ Brands has a consensus target price of $30.00, suggesting a potential upside of 12.78%. Given CAVA Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe CAVA Group is more favorable than Bloomin’ Brands.

Summary

Bloomin’ Brands beats CAVA Group on 6 of the 11 factors compared between the two stocks.

About CAVA Group

CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company offers salads, dips, spreads, toppings, and dressings. It sells its products through whole food markets and grocery stores. The company also provides online food ordering services. Cava Group, Inc. was founded in 2006 and is based in Washington, District of Columbia.

About Bloomin’ Brands

Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. The company operates through two segments, U.S. and International. Its restaurant portfolio has four concepts, including Outback Steakhouse, a casual steakhouse restaurant; Carrabba's Italian Grill, a casual Italian restaurant; Bonefish Grill; and Fleming's Prime Steakhouse & Wine Bar, a contemporary steakhouse. The company was founded in 1988 and is based in Tampa, Florida.