Carrols Restaurant Group (NASDAQ:TAST) and Famous Dave’s of America (NASDAQ:DAVE) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Risk and Volatility
Carrols Restaurant Group has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Famous Dave’s of America has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
88.4% of Carrols Restaurant Group shares are owned by institutional investors. Comparatively, 53.0% of Famous Dave’s of America shares are owned by institutional investors. 4.6% of Carrols Restaurant Group shares are owned by company insiders. Comparatively, 23.6% of Famous Dave’s of America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Carrols Restaurant Group and Famous Dave’s of America’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Carrols Restaurant Group||$1.09 billion||0.37||$7.15 million||$0.20||55.10|
|Famous Dave’s of America||$64.60 million||0.73||-$8.12 million||$0.02||258.00|
Carrols Restaurant Group has higher revenue and earnings than Famous Dave’s of America. Carrols Restaurant Group is trading at a lower price-to-earnings ratio than Famous Dave’s of America, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Carrols Restaurant Group and Famous Dave’s of America, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Carrols Restaurant Group||0||0||3||0||3.00|
|Famous Dave’s of America||0||0||0||0||N/A|
Carrols Restaurant Group presently has a consensus target price of $16.50, indicating a potential upside of 49.73%. Given Carrols Restaurant Group’s higher possible upside, equities research analysts plainly believe Carrols Restaurant Group is more favorable than Famous Dave’s of America.
This table compares Carrols Restaurant Group and Famous Dave’s of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Carrols Restaurant Group||1.06%||8.62%||2.54%|
|Famous Dave’s of America||-0.02%||21.87%||10.00%|
Carrols Restaurant Group beats Famous Dave’s of America on 7 of the 13 factors compared between the two stocks.
About Carrols Restaurant Group
Carrols Restaurant Group, Inc., through its subsidiaries, operates franchisee restaurants of Burger King in the United States. As of July 1, 2018, it owned and operated 807 BURGER KING restaurants. The company was founded in 1960 and is headquartered in Syracuse, New York.
About Famous Dave’s of America
Famous Dave's of America, Inc. develops, owns, operates, and franchises barbeque restaurants under the Famous Dave's name. It offers smoked, barbequed, and grilled meats, as well as entrée items and delicious side dishes that are prepared using prepared proprietary seasonings, sauces, and mixes. The company operates full-service and counter-service restaurants. As of March 5, 2018, it owned 16 locations and franchised 135 restaurants in 32 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates. Famous Dave's of America, Inc. was founded in 1994 and is headquartered in Minnetonka, Minnesota.
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