Analyzing Del Taco Restaurants (TACO) and Country Syl Ckng Restaurant Chain (CCSC)

Del Taco Restaurants (NASDAQ: TACO) and Country Syl Ckng Restaurant Chain (NYSE:CCSC) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings & Valuation

This table compares Del Taco Restaurants and Country Syl Ckng Restaurant Chain’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Del Taco Restaurants $452.08 million 1.04 $20.91 million $0.56 21.71
Country Syl Ckng Restaurant Chain N/A N/A N/A $0.16 32.31

Del Taco Restaurants has higher revenue and earnings than Country Syl Ckng Restaurant Chain. Del Taco Restaurants is trading at a lower price-to-earnings ratio than Country Syl Ckng Restaurant Chain, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Del Taco Restaurants and Country Syl Ckng Restaurant Chain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Del Taco Restaurants 4.78% 5.89% 3.08%
Country Syl Ckng Restaurant Chain 3.68% 5.63% 4.72%

Volatility & Risk

Del Taco Restaurants has a beta of -0.29, indicating that its share price is 129% less volatile than the S&P 500. Comparatively, Country Syl Ckng Restaurant Chain has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Del Taco Restaurants and Country Syl Ckng Restaurant Chain, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Del Taco Restaurants 0 1 4 0 2.80
Country Syl Ckng Restaurant Chain 0 0 0 0 N/A

Del Taco Restaurants currently has a consensus target price of $16.40, suggesting a potential upside of 34.87%. Given Del Taco Restaurants’ higher probable upside, research analysts plainly believe Del Taco Restaurants is more favorable than Country Syl Ckng Restaurant Chain.

Insider and Institutional Ownership

74.4% of Del Taco Restaurants shares are owned by institutional investors. 14.6% of Del Taco Restaurants shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Del Taco Restaurants beats Country Syl Ckng Restaurant Chain on 8 of the 10 factors compared between the two stocks.

About Del Taco Restaurants

Del Taco Restaurants, Inc. is an operator and franchisor of restaurants featuring made-to-order cuisine, including both Mexican inspired and American classic dishes. As of January 3, 2017, the Company operated 551 Del Taco restaurants. The Company’s menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries and milkshakes. The Company’s menu features items, such as its Platos plated meals, Epic Burritos, Handcrafted Ensaladas and Fresca Bowls, as well as items on its Buck & Under Menu. As of January 3, 2017, the Company had 310 Company-operated and 241 franchise-operated restaurants. The Platos menu offering consists of individually plated meals complete with an entree, two sides, and chips and salsa. The Company’s menu also includes quesadillas, bowls and handcrafted ensaladas, as well as burgers and fries.

About Country Syl Ckng Restaurant Chain

Country Style Cooking Restaurant Chain Co., Ltd. (CSC Cayman) is a quick service restaurant chain in China. The Company is engaged in serving Sichuan-style fast food over the counter in the People’s Republic of China. The Company’s restaurant chain has approximately 337 restaurants, including around 177 restaurants in Chongqing municipality and around 103 restaurants in Sichuan province. CSC Cayman’s staples include entrees, such as spicy sauteed pork, Taiwanese-style braised pork over rice, honey-roasted spicy chicken wings, mushroom chicken, shredded pepper steak, shredded quick-fried ginger duck and kung pao chicken, along with a range of appetizers, desserts and beverages. Each entree on its menu is prepared with pre-mixed sauce packages delivered from the Company’s central facility in Chongqing. Approximately 260 of the Company’s restaurants are operated under its CSC brand and around 74 of the restaurants were operated under its Mr. Rice brand.

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