Head-To-Head Survey: Pinstripes (NYSE:PNST) & Wendy’s (NASDAQ:WEN)

Wendy’s (NASDAQ:WEN) and Pinstripes (NYSE:PNST) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Wendy’s and Pinstripes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wendy’s	0	12	3	0	2.20
Pinstripes	0	0	3	0	3.00

Wendy’s presently has a consensus price target of $22.53, indicating a potential upside of 14.81%. Pinstripes has a consensus price target of $6.00, indicating a potential upside of 109.79%. Given Pinstripes’ stronger consensus rating and higher possible upside, analysts clearly believe Pinstripes is more favorable than Wendy’s.

Volatility & Risk

Wendy’s has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Pinstripes has a beta of -0.13, indicating that its stock price is 113% less volatile than the S&P 500.

Earnings & Valuation

This table compares Wendy’s and Pinstripes’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wendy’s	$2.18 billion	1.85	$204.44 million	$0.98	20.02
Pinstripes	N/A	N/A	N/A	N/A	N/A

Wendy’s has higher revenue and earnings than Pinstripes.

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 & 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 company insiders. Comparatively, 22.8% of Pinstripes shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Wendy’s beats Pinstripes on 6 of the 9 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.