Reviewing CAVA Group (NYSE:CAVA) and Biglari (NYSE:BH)

Biglari (NYSE:BH) and CAVA Group (NYSE:CAVA) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Institutional & Insider Ownership

74.3% of Biglari shares are owned by institutional investors. Comparatively, 73.2% of CAVA Group shares are owned by institutional investors. 71.4% of Biglari shares are owned by company 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.

Valuation & Earnings

This table compares Biglari and CAVA Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biglari	$365.32 million	1.27	$54.95 million	$187.42	1.09
CAVA Group	$728.70 million	11.29	$13.28 million	N/A	N/A

Biglari has higher earnings, but lower revenue than CAVA Group.

Analyst Recommendations

This is a breakdown of current recommendations for Biglari and CAVA Group, as reported by MarketBeat.com.

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

CAVA Group has a consensus price target of $60.42, suggesting a potential downside of 16.29%. Given CAVA Group’s higher probable upside, analysts plainly believe CAVA Group is more favorable than Biglari.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Biglari	15.04%	9.18%	6.33%
CAVA Group	1.82%	4.28%	1.50%

Summary

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

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. It owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. The company also engages in underwriting commercial trucking insurance; selling physical damage and non-trucking liability insurance to truckers; and providing property and casualty insurance. In addition, it operates oil and natural gas properties in the Gulf of Mexico; and publishes and sells magazines under the MAXIM brand name. Further, it licenses media products and services; and engages in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.

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.