WallStSmart

Yum! Brands Inc (YUM)vsYum China Holdings Inc (YUMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Yum China Holdings Inc generates 44% more annual revenue ($11.80B vs $8.21B). YUM leads profitability with a 19.0% profit margin vs 7.9%. YUMC appears more attractively valued with a PEG of 1.34. YUMC earns a higher WallStSmart Score of 64/100 (C+).

YUM

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 10.0Quality: 4.5
Piotroski: 2/9

YUMC

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 6.0Value: 10.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

YUMUndervalued (+38.8%)

Margin of Safety

+38.8%

Fair Value

$259.74

Current Price

$156.41

$103.33 discount

UndervaluedFair: $259.74Overvalued
YUMCUndervalued (+52.2%)

Margin of Safety

+52.2%

Fair Value

$117.47

Current Price

$51.74

$65.73 discount

UndervaluedFair: $117.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

YUM2 strengths · Avg: 9.0/10
Operating MarginProfitability
31.9%10/10

Strong operational efficiency at 31.9%

EPS GrowthGrowth
27.7%8/10

Earnings expanding 27.7% YoY

YUMC1 strengths · Avg: 8.0/10
EPS GrowthGrowth
34.3%8/10

Earnings expanding 34.3% YoY

Areas to Watch

YUM4 concerns · Avg: 3.5/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

P/E RatioValuation
28.2x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

YUMC2 concerns · Avg: 2.5/10
Profit MarginProfitability
7.9%3/10

7.9% margin — thin

Free Cash FlowQuality
$-112.93M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.

Bull Case : YUMC

The strongest argument for YUMC centers on EPS Growth. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.

Bear Case : YUMC

The primary concerns for YUMC are Profit Margin, Free Cash Flow.

Key Dynamics to Monitor

YUM profiles as a mature stock while YUMC is a value play — different risk/reward profiles.

YUM carries more volatility with a beta of 0.64 — expect wider price swings.

YUMC is growing revenue faster at 8.8% — sustainability is the question.

YUM generates stronger free cash flow (482M), providing more financial flexibility.

Bottom Line

YUMC scores higher overall (64/100 vs 59/100). YUM offers better value entry with a 38.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

Yum China Holdings Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum China Holdings, Inc. owns, operates and franchises restaurants in China. The company is headquartered in Shanghai, China.

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