Contrasting Wendy’s (NASDAQ:WEN) and Pinstripes (NYSE:PNST)

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 risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Risk & Volatility

Wendy’s has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Pinstripes has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500.

Insider & Institutional Ownership

86.0% of Wendy’s shares are owned by institutional investors. Comparatively, 56.8% of Pinstripes shares are owned by institutional investors. 17.1% of Wendy’s shares are owned by company insiders. Comparatively, 22.8% of Pinstripes shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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	9.44%	62.68%	3.99%
Pinstripes	N/A	N/A	-8.99%

Earnings and Valuation

This table compares Wendy’s and Pinstripes’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wendy’s	$2.18 billion	1.61	$204.44 million	$0.99	17.33
Pinstripes	N/A	N/A	N/A	N/A	N/A

Wendy’s has higher revenue and earnings than Pinstripes.

Analyst Recommendations

This is a summary of current recommendations and price targets for Wendy’s and Pinstripes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wendy’s	0	13	3	0	2.19
Pinstripes	0	0	3	0	3.00

Wendy’s presently has a consensus target price of $22.06, indicating a potential upside of 28.53%. Pinstripes has a consensus target price of $6.00, indicating a potential upside of 110.53%. Given Pinstripes’ stronger consensus rating and higher probable upside, analysts plainly believe Pinstripes is more favorable than Wendy’s.

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.