Bob Evans Farms (NASDAQ: BOBE) and Chanticleer (NASDAQ:BURG) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Bob Evans Farms pays an annual dividend of $1.36 per share and has a dividend yield of 1.7%. Chanticleer does not pay a dividend. Bob Evans Farms pays out 21.7% of its earnings in the form of a dividend. Bob Evans Farms has increased its dividend for 9 consecutive years.
This table compares Bob Evans Farms and Chanticleer’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bob Evans Farms||$394.84 million||3.97||$126.46 million||$6.26||12.48|
|Chanticleer||$41.70 million||0.20||-$9.07 million||($2.58)||-1.05|
Bob Evans Farms has higher revenue and earnings than Chanticleer. Chanticleer is trading at a lower price-to-earnings ratio than Bob Evans Farms, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
77.9% of Bob Evans Farms shares are owned by institutional investors. Comparatively, 2.3% of Chanticleer shares are owned by institutional investors. 1.2% of Bob Evans Farms shares are owned by insiders. Comparatively, 2.5% of Chanticleer shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Bob Evans Farms has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Chanticleer has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Bob Evans Farms and Chanticleer, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bob Evans Farms||0||7||1||0||2.13|
Bob Evans Farms presently has a consensus price target of $75.92, indicating a potential downside of 2.82%. Given Bob Evans Farms’ higher possible upside, research analysts clearly believe Bob Evans Farms is more favorable than Chanticleer.
This table compares Bob Evans Farms and Chanticleer’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bob Evans Farms||28.75%||18.55%||8.10%|
Bob Evans Farms beats Chanticleer on 12 of the 15 factors compared between the two stocks.
About Bob Evans Farms
Bob Evans Farms, Inc. (Bob Evans) is a producer and distributor of refrigerated potato, pasta and vegetable-based side dishes, pork sausage, and a variety of refrigerated and frozen food items under the Bob Evans and Owens or Country Creek brand names. The Company’s food products are distributed to customers throughout the United States. Additionally, the Company manufactures and sells similar products to foodservice customers, restaurants and food sellers. The Company operates through BEF Foods segment. The BEF Foods segment offers a range of wholesome food products to retail and foodservice customers. The Company produces food products in its four manufacturing facilities. It produces sausage products at its plants located in Hillsdale, Michigan, and Xenia, Ohio.
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.
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