Comparing Greene King (GKNGY) & Wendy’s (WEN)

Greene King (OTCMKTS: GKNGY) and Wendy’s (NASDAQ:WEN) are both mid-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Valuation and Earnings

How to Become a New Pot Stock Millionaire

This table compares Greene King and Wendy’s’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Greene King $2.87 billion 0.79 $196.23 million $1.83 8.01
Wendy’s $1.22 billion 3.38 $194.02 million $0.43 40.14

Greene King has higher revenue and earnings than Wendy’s. Greene King is trading at a lower price-to-earnings ratio than Wendy’s, indicating that it is currently the more affordable of the two stocks.

Dividends

Greene King pays an annual dividend of $0.87 per share and has a dividend yield of 5.9%. Wendy’s pays an annual dividend of $0.34 per share and has a dividend yield of 2.0%. Greene King pays out 47.5% of its earnings in the form of a dividend. Wendy’s pays out 79.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Greene King is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

80.6% of Wendy’s shares are owned by institutional investors. 26.5% of Wendy’s shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Greene King and Wendy’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Greene King N/A N/A N/A
Wendy’s 15.86% 21.24% 2.68%

Analyst Ratings

This is a summary of current recommendations for Greene King and Wendy’s, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Greene King 0 0 0 0 N/A
Wendy’s 1 9 11 0 2.48

Wendy’s has a consensus target price of $17.48, indicating a potential upside of 1.27%. Given Wendy’s’ higher possible upside, analysts plainly believe Wendy’s is more favorable than Greene King.

Risk and Volatility

Greene King has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Wendy’s has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Summary

Wendy’s beats Greene King on 10 of the 15 factors compared between the two stocks.

Greene King Company Profile

Greene King plc operates as a pub retailer and brewer in the United Kingdom. The company operates through Pub Company, Pub Partners, and Brewing & Brands segments. Its retail brands and formats include Greene King Local Pubs, Hungry Horse, Flaming Grill, Farmhouse Inns, and Chef & Brewer. The company is also involved in brewing, marketing, and selling beer under the Greene King IPA, Old Speckled Hen, Abbot Ale, and Belhaven Best brands. In addition, Greene King plc engages in the employment, financing, pension trustee, and property businesses. It operates 2,924 pubs, restaurants, and hotels across England, Wales, and Scotland, including 1,769 retail pubs, restaurants, and hotels, and 1,155 tenanted, leased, and franchised pubs. Greene King plc was founded in 1799 and is headquartered in Bury St Edmunds, the United Kingdom.

Wendy’s Company Profile

The Wendy’s Company is the parent company of subsidiary holding company Wendy’s Restaurants, LLC (Wendy’s Restaurants). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (Wendy’s), which is the owner and franchisor of the Wendy’s restaurant system in the United States. Wendy’s is a restaurant company specializing in the hamburger sandwich segment. Wendy’s is engaged in the business of operating, developing and franchising a system of restaurants serving food. The Company operated approximately 6,080 Wendy’s restaurants in operation in North America, as of January 1, 2017. Of these restaurants, 330 were operated by the Company and 5,768 by a total of 376 franchisees, as of January 1, 2017. In addition, as of January 1, 2017, there were 439 franchised Wendy’s restaurants in operation in 29 countries and territories other than North America. Wendy’s is also a partner in a restaurant real estate joint venture with a subsidiary of Restaurant Brands International Inc.

Receive News & Ratings for Greene King Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Greene King and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply