Contrasting BAB (OTCMKTS:BABB) and CAVA Group (NYSE:CAVA)

CAVA Group (NYSE:CAVA) and BAB (OTCMKTS:BABB) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Valuation and Earnings

This table compares CAVA Group and BAB’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$728.70 million	9.83	$13.28 million	N/A	N/A
BAB	$3.51 million	1.61	$470,000.00	$0.07	11.14

CAVA Group has higher revenue and earnings than BAB.

Analyst Recommendations

This is a breakdown of current recommendations for CAVA Group and BAB, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAVA Group	0	4	10	0	2.71
BAB	0	0	0	0	N/A

CAVA Group currently has a consensus price target of $60.42, suggesting a potential downside of 3.84%. Given CAVA Group’s higher probable upside, research analysts plainly believe CAVA Group is more favorable than BAB.

Insider and Institutional Ownership

73.2% of CAVA Group shares are owned by institutional investors. 33.7% of BAB shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAVA Group	1.82%	4.28%	1.50%
BAB	14.78%	17.14%	12.39%

Summary

CAVA Group beats BAB on 6 of the 10 factors compared between the two stocks.

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.

About BAB

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It's BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company's SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.