Head to Head Analysis: Mitchells & Butlers (OTCMKTS:MBPFF) & CAVA Group (NYSE:CAVA)

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

Institutional & Insider Ownership

73.2% of CAVA Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Mitchells & Butlers has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.27, indicating that its stock price is 227% more volatile than the S&P 500.

Earnings & Valuation

This table compares Mitchells & Butlers and CAVA Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitchells & Butlers	$3.07 billion	0.75	-$4.91 million	N/A	N/A
CAVA Group	$784.62 million	11.59	$13.28 million	$0.41	194.46

CAVA Group has lower revenue, but higher earnings than Mitchells & Butlers.

Analyst Ratings

This is a summary of recent ratings and price targets for Mitchells & Butlers and CAVA Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitchells & Butlers	0	0	0	0	N/A
CAVA Group	0	6	8	0	2.57

CAVA Group has a consensus target price of $82.75, suggesting a potential upside of 3.79%. Given CAVA Group’s higher probable upside, analysts clearly believe CAVA Group is more favorable than Mitchells & Butlers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mitchells & Butlers	N/A	N/A	N/A
CAVA Group	3.75%	5.18%	2.98%

Summary

CAVA Group beats Mitchells & Butlers on 9 of the 10 factors compared between the two stocks.

About Mitchells & Butlers

Mitchells & Butlers plc engages in the management of pubs, bars, and restaurants in the United Kingdom and Germany. The company operates its pubs and restaurants under the Alex, All Bar One, Browns, Castle, EGO, Ember Inns, Harvester, High Street, Innkeeper's Lodge, Miller & Carter, Nicholson's, O'Neill's, Premium Country Pubs, Sizzling Pubs, Suburban, Stonehouse Pizza & Carvery, Toby Carvery, and Vintage Inns brands and formats. It also engages in the leisure retailing; property leasing, property management, and development; and financing activities, as well as operates as a healthcare trustee. In addition, the company owns various trademarks. The company was founded in 1898 and is headquartered in Birmingham, the United Kingdom.

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.