Wingstop (WING) & Its Competitors Financial Analysis

Wingstop (NASDAQ:WING) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its rivals? We will compare Wingstop to related businesses based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, dividends and valuation.

Insider and Institutional Ownership

48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 0.5% of Wingstop shares are held by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Wingstop has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Wingstop’s rivals have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Profitability

This table compares Wingstop and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wingstop	16.03%	-15.80%	18.12%
Wingstop Competitors	2.41%	-40.04%	2.14%

Valuation and Earnings

This table compares Wingstop and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Wingstop	$730.11 million	$174.27 million	38.73
Wingstop Competitors	$3.43 billion	$250.20 million	-158.64

Wingstop’s rivals have higher revenue and earnings than Wingstop. Wingstop is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Wingstop and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wingstop	1	5	21	1	2.79
Wingstop Competitors	3798	17236	25531	901	2.50

Wingstop currently has a consensus target price of $219.56, suggesting a potential upside of 33.08%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 57.83%. Given Wingstop’s rivals higher probable upside, analysts clearly believe Wingstop has less favorable growth aspects than its rivals.

Dividends

Wingstop pays an annual dividend of $1.32 per share and has a dividend yield of 0.8%. Wingstop pays out 31.0% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.1% of their earnings in the form of a dividend. Wingstop has increased its dividend for 7 consecutive years.

Summary

Wingstop beats its rivals on 9 of the 15 factors compared.

Wingstop Company Profile

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.