Aramark (NYSE: ARMK) and Chanticleer Holdings (NASDAQ:HOTR) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.
Insider and Institutional Ownership
95.7% of Aramark shares are held by institutional investors. Comparatively, 26.0% of Chanticleer Holdings shares are held by institutional investors. 2.9% of Aramark shares are held by insiders. Comparatively, 2.5% of Chanticleer Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Aramark pays an annual dividend of $0.41 per share and has a dividend yield of 1.0%. Chanticleer Holdings does not pay a dividend. Aramark pays out 29.9% of its earnings in the form of a dividend. Chanticleer Holdings has raised its dividend for 2 consecutive years.
This is a summary of recent ratings and target prices for Aramark and Chanticleer Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aramark presently has a consensus target price of $43.14, suggesting a potential upside of 10.40%. Given Aramark’s higher probable upside, equities research analysts clearly believe Aramark is more favorable than Chanticleer Holdings.
Risk & Volatility
Aramark has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Chanticleer Holdings has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Earnings and Valuation
This table compares Aramark and Chanticleer Holdings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Aramark||$14.49 billion||0.66||$1.29 billion||$1.37||28.53|
|Chanticleer Holdings||$41.46 million||0.15||-$378,264.00||($2.58)||-0.94|
Aramark has higher revenue and earnings than Chanticleer Holdings. Chanticleer Holdings is trading at a lower price-to-earnings ratio than Aramark, indicating that it is currently the more affordable of the two stocks.
This table compares Aramark and Chanticleer Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Aramark beats Chanticleer Holdings on 13 of the 16 factors compared between the two stocks.
Aramark is a global provider of food, facilities and uniform services to education, healthcare, business and industry, and sports, leisure and corrections clients. The Company operates through three segments: Food and Support Services North America (FSS North America), Food and Support Services International (FSS International), and Uniform and Career Apparel (Uniform). FSS North America and FSS International segments include food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities. The Uniform segment includes rental, sale, cleaning, maintenance and delivery of personalized uniforms and other textile items to clients in a range of industries in the United States, Puerto Rico, Japan and Canada, including manufacturing, transportation, construction, restaurants and hotels, healthcare and pharmaceutical industries.
About Chanticleer Holdings
Chanticleer Holdings, Inc. is engaged in the business of owning, operating and franchising fast casual dining concepts domestically and internationally. The Company’s brands include Hooters, American Burger Company (ABC), BGR: the Burger Joint (BGR), BT’s Burger Joint (BT), Little Big Burger (LBB) and Just Fresh. Hooters restaurants are casual beach-themed establishments featuring music, sports on large flat screens, and a menu that includes seafood, burgers, salads and Hooters original chicken wings. ABC is a fast casual dining chain located in North Carolina, South Carolina and New York. BGR consists of approximately 10 Company-owned locations in the United States and over 13 franchisee-operated locations in the United States and the Middle East. LBB consists of approximately eight locations in Oregon. Just Fresh consists of approximately seven Company owned locations in Charlotte, North Carolina.
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