Reviewing Dave & Buster’s (PLAY) & The Competition

Dave & Buster’s (NASDAQ: PLAY) is one of 56 publicly-traded companies in the “Eating places” industry, but how does it compare to its peers? We will compare Dave & Buster’s to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Dave & Buster’s and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dave & Buster’s 0 0 9 0 3.00
Dave & Buster’s Competitors 535 2736 3041 127 2.43

Dave & Buster’s presently has a consensus price target of $61.89, indicating a potential upside of 54.41%. As a group, “Eating places” companies have a potential upside of 3.77%. Given Dave & Buster’s’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Dave & Buster’s is more favorable than its peers.

Valuation and Earnings

This table compares Dave & Buster’s and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Dave & Buster’s $1.14 billion $120.94 million 15.42
Dave & Buster’s Competitors $1.91 billion $185.16 million 17.63

Dave & Buster’s’ peers have higher revenue and earnings than Dave & Buster’s. Dave & Buster’s is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

66.3% of shares of all “Eating places” companies are owned by institutional investors. 3.4% of Dave & Buster’s shares are owned by insiders. Comparatively, 17.5% of shares of all “Eating places” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Dave & Buster’s has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, Dave & Buster’s’ peers have a beta of 0.55, indicating that their average stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Dave & Buster’s and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dave & Buster’s 10.61% 24.67% 9.41%
Dave & Buster’s Competitors 3.66% -2.56% 5.18%

Summary

Dave & Buster’s peers beat Dave & Buster’s on 7 of the 13 factors compared.

Dave & Buster’s Company Profile

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 3, 2018, it owned and operated 110 stores in 37 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.

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