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BBY vs. CAVA: A Head-to-Head Stock Comparison

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Here’s a clear look at BBY and CAVA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolBBYCAVA
Company NameBest Buy Co., Inc.CAVA Group, Inc.
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustrySpecialty RetailHotels, Restaurants & Leisure
Market Capitalization15.71 billion USD7.95 billion USD
ExchangeNYSENYSE
Listing DateApril 18, 1985June 15, 2023
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of BBY and CAVA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BBY vs. CAVA: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolBBYCAVA
5-Day Price Return0.30%-4.38%
13-Week Price Return5.03%-22.42%
26-Week Price Return-18.42%-45.19%
52-Week Price Return-13.33%-35.82%
Month-to-Date Return14.23%-25.63%
Year-to-Date Return-13.38%-41.98%
10-Day Avg. Volume3.39M9.52M
3-Month Avg. Volume3.54M4.22M
3-Month Volatility36.41%53.00%
Beta1.261.74

Profitability

Return on Equity (TTM)

BBY

30.03%

Specialty Retail Industry

Max
61.19%
Q3
37.24%
Median
18.81%
Q1
8.92%
Min
-13.03%

BBY’s Return on Equity of 30.03% is on par with the norm for the Specialty Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

CAVA

20.17%

Hotels, Restaurants & Leisure Industry

Max
83.01%
Q3
39.51%
Median
17.38%
Q1
5.32%
Min
-45.92%

CAVA’s Return on Equity of 20.17% is on par with the norm for the Hotels, Restaurants & Leisure industry, indicating its profitability relative to shareholder equity is typical for the sector.

BBY vs. CAVA: A comparison of their Return on Equity (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Net Profit Margin (TTM)

BBY

2.13%

Specialty Retail Industry

Max
21.28%
Q3
10.68%
Median
6.08%
Q1
2.43%
Min
-4.54%

Falling into the lower quartile for the Specialty Retail industry, BBY’s Net Profit Margin of 2.13% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

CAVA

12.98%

Hotels, Restaurants & Leisure Industry

Max
26.45%
Q3
14.67%
Median
8.69%
Q1
3.34%
Min
-11.30%

CAVA’s Net Profit Margin of 12.98% is aligned with the median group of its peers in the Hotels, Restaurants & Leisure industry. This indicates its ability to convert revenue into profit is typical for the sector.

BBY vs. CAVA: A comparison of their Net Profit Margin (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Operating Profit Margin (TTM)

BBY

2.82%

Specialty Retail Industry

Max
33.35%
Q3
15.84%
Median
9.34%
Q1
3.83%
Min
-8.97%

BBY’s Operating Profit Margin of 2.82% is in the lower quartile for the Specialty Retail industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

CAVA

4.90%

Hotels, Restaurants & Leisure Industry

Max
38.76%
Q3
21.15%
Median
14.20%
Q1
6.43%
Min
-14.56%

CAVA’s Operating Profit Margin of 4.90% is in the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

BBY vs. CAVA: A comparison of their Operating Profit Margin (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Profitability at a Glance

SymbolBBYCAVA
Return on Equity (TTM)30.03%20.17%
Return on Assets (TTM)5.74%11.80%
Net Profit Margin (TTM)2.13%12.98%
Operating Profit Margin (TTM)2.82%4.90%
Gross Profit Margin (TTM)22.61%32.26%

Financial Strength

Current Ratio (MRQ)

BBY

1.02

Specialty Retail Industry

Max
2.83
Q3
1.89
Median
1.39
Q1
1.11
Min
0.64

BBY’s Current Ratio of 1.02 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CAVA

2.72

Hotels, Restaurants & Leisure Industry

Max
2.68
Q3
1.62
Median
1.11
Q1
0.74
Min
0.19

CAVA’s Current Ratio of 2.72 is exceptionally high, placing it well outside the typical range for the Hotels, Restaurants & Leisure industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

BBY vs. CAVA: A comparison of their Current Ratio (MRQ) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BBY

0.42

Specialty Retail Industry

Max
3.02
Q3
1.57
Median
0.64
Q1
0.20
Min
0.00

BBY’s Debt-to-Equity Ratio of 0.42 is typical for the Specialty Retail industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CAVA

0.00

Hotels, Restaurants & Leisure Industry

Max
9.88
Q3
4.54
Median
1.52
Q1
0.27
Min
0.00

Falling into the lower quartile for the Hotels, Restaurants & Leisure industry, CAVA’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

BBY vs. CAVA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Interest Coverage Ratio (TTM)

BBY

256.43

Specialty Retail Industry

Max
48.12
Q3
35.95
Median
14.13
Q1
3.61
Min
-36.00

With an Interest Coverage Ratio of 256.43, BBY demonstrates a superior capacity to service its debt, placing it well above the typical range for the Specialty Retail industry. This stems from either robust earnings or a conservative debt load.

CAVA

-1,252.06

Hotels, Restaurants & Leisure Industry

Max
26.88
Q3
11.95
Median
3.87
Q1
1.19
Min
-11.84

CAVA has a negative Interest Coverage Ratio of -1,252.06. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

BBY vs. CAVA: A comparison of their Interest Coverage Ratio (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Financial Strength at a Glance

SymbolBBYCAVA
Current Ratio (MRQ)1.022.72
Quick Ratio (MRQ)0.322.62
Debt-to-Equity Ratio (MRQ)0.420.00
Interest Coverage Ratio (TTM)256.43-1,252.06

Growth

Revenue Growth

BBY vs. CAVA: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BBY vs. CAVA: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BBY

5.27%

Specialty Retail Industry

Max
6.53%
Q3
2.69%
Median
1.08%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 5.27%, BBY offers a more attractive income stream than most of its peers in the Specialty Retail industry, signaling a strong commitment to shareholder returns.

CAVA

0.00%

Hotels, Restaurants & Leisure Industry

Max
5.88%
Q3
2.37%
Median
0.68%
Q1
0.00%
Min
0.00%

CAVA currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

BBY vs. CAVA: A comparison of their Dividend Yield (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Dividend Payout Ratio (TTM)

BBY

91.39%

Specialty Retail Industry

Max
165.81%
Q3
80.94%
Median
31.61%
Q1
0.00%
Min
0.00%

BBY’s Dividend Payout Ratio of 91.39% is in the upper quartile for the Specialty Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

CAVA

0.00%

Hotels, Restaurants & Leisure Industry

Max
127.31%
Q3
56.79%
Median
19.58%
Q1
0.00%
Min
0.00%

CAVA has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

BBY vs. CAVA: A comparison of their Dividend Payout Ratio (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Dividend at a Glance

SymbolBBYCAVA
Dividend Yield (TTM)5.27%0.00%
Dividend Payout Ratio (TTM)91.39%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

BBY

17.34

Specialty Retail Industry

Max
48.56
Q3
29.15
Median
22.00
Q1
15.46
Min
7.95

BBY’s P/E Ratio of 17.34 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CAVA

56.51

Hotels, Restaurants & Leisure Industry

Max
59.44
Q3
33.98
Median
22.25
Q1
15.53
Min
7.61

A P/E Ratio of 56.51 places CAVA in the upper quartile for the Hotels, Restaurants & Leisure industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

BBY vs. CAVA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Price-to-Sales Ratio (TTM)

BBY

0.37

Specialty Retail Industry

Max
5.08
Q3
2.69
Median
1.23
Q1
0.48
Min
0.09

In the lower quartile for the Specialty Retail industry, BBY’s P/S Ratio of 0.37 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

CAVA

7.34

Hotels, Restaurants & Leisure Industry

Max
7.74
Q3
3.88
Median
2.05
Q1
1.19
Min
0.17

CAVA’s P/S Ratio of 7.34 is in the upper echelon for the Hotels, Restaurants & Leisure industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

BBY vs. CAVA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Price-to-Book Ratio (MRQ)

BBY

5.18

Specialty Retail Industry

Max
16.93
Q3
7.98
Median
3.69
Q1
1.79
Min
0.21

BBY’s P/B Ratio of 5.18 is within the conventional range for the Specialty Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

CAVA

13.84

Hotels, Restaurants & Leisure Industry

Max
20.90
Q3
9.78
Median
4.29
Q1
2.22
Min
0.47

CAVA’s P/B Ratio of 13.84 is in the upper tier for the Hotels, Restaurants & Leisure industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

BBY vs. CAVA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Specialty Retail and Hotels, Restaurants & Leisure industry benchmarks.

Valuation at a Glance

SymbolBBYCAVA
Price-to-Earnings Ratio (TTM)17.3456.51
Price-to-Sales Ratio (TTM)0.377.34
Price-to-Book Ratio (MRQ)5.1813.84
Price-to-Free Cash Flow Ratio (TTM)8.32167.75