Chanticleer (NASDAQ: BURG) and Texas Roadhouse (NASDAQ:TXRH) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Institutional and Insider Ownership
1.8% of Chanticleer shares are owned by institutional investors. Comparatively, 86.0% of Texas Roadhouse shares are owned by institutional investors. 2.5% of Chanticleer shares are owned by insiders. Comparatively, 7.4% of Texas Roadhouse shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Chanticleer has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.
This is a breakdown of current ratings for Chanticleer and Texas Roadhouse, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Texas Roadhouse has a consensus target price of $53.63, suggesting a potential downside of 6.22%. Given Texas Roadhouse’s higher probable upside, analysts clearly believe Texas Roadhouse is more favorable than Chanticleer.
Texas Roadhouse pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Chanticleer does not pay a dividend. Texas Roadhouse pays out 48.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Chanticleer and Texas Roadhouse’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chanticleer||$41.70 million||0.23||-$9.07 million||($2.88)||-1.12|
|Texas Roadhouse||$1.99 billion||2.04||$115.59 million||$1.73||33.06|
Texas Roadhouse has higher revenue and earnings than Chanticleer. Chanticleer is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.
This table compares Chanticleer and Texas Roadhouse’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Texas Roadhouse beats Chanticleer on 13 of the 15 factors compared between the two stocks.
Chanticleer Company Profile
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.
Texas Roadhouse Company Profile
Texas Roadhouse, Inc. is a restaurant company, which operates in the casual dining segment. The Company offers an assortment of seasoned and aged steaks, all cooked over open grills and all but one hand cut daily on the premises. Its restaurants offer a range of menu items at prices that are designed to appeal to a range of consumer tastes. The Company also offers its guests a selection of ribs, fish, seafood, chicken, pork chops, pulled pork and vegetable plates, and an assortment of hamburgers, salads and sandwiches. The Company offers an assortment of wings, sandwiches, pizzas and burgers, including its bacon grind patty. In addition, the Company also offers its guests a selection of chicken, beef, fish and seafood. Other menu items include specialty appetizers, such as the Cactus Blossom and Rattlesnake Bites. As of December 27, 2016, the Company had 23 franchisees that operated 86 Texas Roadhouse restaurants in 23 states and six foreign countries.
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