Red Robin Gourmet Burgers (NASDAQ:RRGB) and Star Buffet (OTCMKTS:STRZ) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Risk & Volatility
Red Robin Gourmet Burgers has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Star Buffet has a beta of 2.28, suggesting that its stock price is 128% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Red Robin Gourmet Burgers and Star Buffet, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Red Robin Gourmet Burgers||1||4||2||0||2.14|
Red Robin Gourmet Burgers presently has a consensus target price of $34.33, suggesting a potential downside of 3.23%. Given Red Robin Gourmet Burgers’ higher probable upside, equities research analysts plainly believe Red Robin Gourmet Burgers is more favorable than Star Buffet.
Valuation and Earnings
This table compares Red Robin Gourmet Burgers and Star Buffet’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Red Robin Gourmet Burgers||$1.34 billion||0.34||-$6.42 million||$1.73||20.51|
|Star Buffet||$26.04 million||0.02||-$540,000.00||N/A||N/A|
Star Buffet has lower revenue, but higher earnings than Red Robin Gourmet Burgers.
This table compares Red Robin Gourmet Burgers and Star Buffet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Red Robin Gourmet Burgers||-0.82%||4.89%||1.57%|
Red Robin Gourmet Burgers beats Star Buffet on 7 of the 9 factors compared between the two stocks.
Red Robin Gourmet Burgers Company Profile
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises full-service and casual-dining restaurants in the United States and Canada. The company's restaurants primarily offer burgers; various appetizers, salads, soups, seafood, and other entrees; and desserts, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. As of December 31, 2018, it operated 484 company-owned restaurants located in 39 states and 2 Canadian provinces; and had 89 casual-dining restaurants operated by franchisees in 16 states. The company was founded in 1969 and is headquartered in Greenwood Village, Colorado.
Star Buffet Company Profile
Star Buffet, Inc. owns and operates full service restaurants in the United States. As of July 19, 2018, it operated 27 restaurants in 10 states. The company operates its restaurants under the 4B's, JB's, Barnhill's Salads Buffet Desserts, Casa Bonita, and BuddyFreddys names. Star Buffet, Inc. was founded in 1997 and is based in Scottsdale, Arizona.
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