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CAVA vs GME

CAVA
CAVA Group, Inc.
BEARISH
Price
$95.68
Market Cap
$11.14B
Sector
Consumer Cyclical
AI Confidence
90%
GME
GameStop Corp.
BEARISH
Price
$25.41
Market Cap
$11.39B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
CAVA
177.19
GME
33.0
Forward P/E
CAVA
132.05
GME
31.37
P/B Ratio
CAVA
14.25
GME
2.09
P/S Ratio
CAVA
9.44
GME
3.14
EV/EBITDA
CAVA
83.72
GME
22.52

Profitability

Gross Margin
CAVA
37.42%
GME
32.95%
Operating Margin
CAVA
1.39%
GME
13.02%
Profit Margin
CAVA
5.4%
GME
11.53%
ROE
CAVA
8.64%
GME
8.07%
ROA
CAVA
2.97%
GME
2.19%

Growth

Revenue Growth
CAVA
20.9%
GME
-13.9%
Earnings Growth
CAVA
-94.0%
GME
-25.3%

Financial Health

Debt/Equity
CAVA
0.6
GME
0.8
Current Ratio
CAVA
2.65
GME
15.3
Quick Ratio
CAVA
2.53
GME
13.84

Dividends

Dividend Yield
CAVA
--
GME
--
Payout Ratio
CAVA
0.0%
GME
0.0%

AI Verdict

CAVA BEARISH

CAVA exhibits a stable but mediocre Piotroski F-Score of 4/9, while its valuation is completely detached from fundamental reality. With a Graham Number of $9.03 and an Intrinsic Value of $3.78, the current price of $95.68 represents a massive premium that is not supported by the recent -94% collapse in earnings growth. Despite strong revenue growth and a healthy balance sheet, the combination of an astronomical P/E ratio (177.19), bearish insider selling, and a technical trend score of 10/100 suggests a high probability of a significant correction.

Strengths
Strong revenue growth of 20.90% YoY
Excellent liquidity with a Current Ratio of 2.65
Manageable leverage with a Debt/Equity ratio of 0.60
Risks
Extreme valuation with a P/E ratio of 177.19
Severe earnings contraction (-94% YoY growth)
Significant divergence between current price and Graham/Intrinsic values
GME BEARISH

GME exhibits a stable but mediocre Piotroski F-Score of 4/9, indicating a lack of strong fundamental momentum. The stock is trading at a significant premium to both its Graham Number ($14.51) and its growth-based Intrinsic Value ($5.39), suggesting severe overvaluation. While the company maintains an exceptional liquidity position with a Current Ratio of 15.30, this is offset by negative YoY revenue (-13.90%) and earnings growth (-25.30%). The combination of bearish insider activity and declining fundamentals outweighs the recent quarterly earnings beats.

Strengths
Exceptional liquidity with a Current Ratio of 15.30
Positive profit margins (11.53%) and operating margins (13.02%)
Debt-to-Equity ratio (0.80) is lower than the sector average (1.53)
Risks
Significant overvaluation relative to Graham Number and Intrinsic Value
Negative year-over-year revenue growth (-13.90%)
Negative year-over-year earnings growth (-25.30%)

Compare Another Pair

CAVA vs GME: Head-to-Head Comparison

This page compares CAVA Group, Inc. (CAVA) and GameStop Corp. (GME) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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