Carrols Restaurant Group (NASDAQ:TAST) and Dave & Buster’s Entertainment (NASDAQ:PLAY) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Volatility and Risk
Carrols Restaurant Group has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Dave & Buster’s Entertainment pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Carrols Restaurant Group does not pay a dividend. Dave & Buster’s Entertainment pays out 20.5% of its earnings in the form of a dividend.
This table compares Carrols Restaurant Group and Dave & Buster’s Entertainment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Carrols Restaurant Group||-0.77%||0.16%||0.04%|
|Dave & Buster’s Entertainment||9.06%||29.12%||7.87%|
Earnings and Valuation
This table compares Carrols Restaurant Group and Dave & Buster’s Entertainment’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Carrols Restaurant Group||$1.18 billion||0.27||$10.10 million||$0.30||24.20|
|Dave & Buster’s Entertainment||$1.27 billion||1.15||$117.22 million||$2.93||13.67|
Dave & Buster’s Entertainment has higher revenue and earnings than Carrols Restaurant Group. Dave & Buster’s Entertainment is trading at a lower price-to-earnings ratio than Carrols Restaurant Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
71.9% of Carrols Restaurant Group shares are owned by institutional investors. 22.0% of Carrols Restaurant Group shares are owned by company insiders. Comparatively, 3.7% of Dave & Buster’s Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Carrols Restaurant Group and Dave & Buster’s Entertainment, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Carrols Restaurant Group||0||0||3||0||3.00|
|Dave & Buster’s Entertainment||0||5||6||0||2.55|
Carrols Restaurant Group presently has a consensus target price of $14.50, suggesting a potential upside of 99.72%. Dave & Buster’s Entertainment has a consensus target price of $52.52, suggesting a potential upside of 31.10%. Given Carrols Restaurant Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Carrols Restaurant Group is more favorable than Dave & Buster’s Entertainment.
Dave & Buster’s Entertainment beats Carrols Restaurant Group on 10 of the 16 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 May 7, 2019, it owned and operated 1,010 Burger King and 55 Popeyes restaurants in 23 states.. The company was founded in 1960 and is headquartered in Syracuse, New York.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrÃ©es 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 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
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