Bob Evans Farms (NASDAQ: BOBE) and Chanticleer Holdings (NASDAQ:HOTR) 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 analyst recommendations, institutional ownership, dividends, earnings, profitabiliy, valuation and risk.
Volatility & Risk
Bob Evans Farms has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Chanticleer Holdings has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Institutional & Insider Ownership
78.4% of Bob Evans Farms shares are held by institutional investors. Comparatively, 39.9% of Chanticleer Holdings shares are held by institutional investors. 1.2% of Bob Evans Farms shares are held by insiders. Comparatively, 2.5% of Chanticleer Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for Bob Evans Farms and Chanticleer Holdings, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bob Evans Farms | 0 | 3 | 3 | 0 | 2.50 |
| Chanticleer Holdings | 0 | 0 | 0 | 0 | N/A |
Bob Evans Farms currently has a consensus target price of $75.68, suggesting a potential upside of 11.86%. Given Bob Evans Farms’ higher possible upside, equities research analysts plainly believe Bob Evans Farms is more favorable than Chanticleer Holdings.
Dividends
Bob Evans Farms pays an annual dividend of $1.36 per share and has a dividend yield of 2.0%. Chanticleer Holdings does not pay a dividend. Bob Evans Farms pays out 21.7% of its earnings in the form of a dividend. Chanticleer Holdings has raised its dividend for 9 consecutive years.
Profitability
This table compares Bob Evans Farms and Chanticleer Holdings’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bob Evans Farms | 15.15% | 19.58% | 6.82% |
| Chanticleer Holdings | -22.89% | -34.68% | -14.53% |
Earnings & Valuation
This table compares Bob Evans Farms and Chanticleer Holdings’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Bob Evans Farms | $394.84 million | 3.41 | $71.50 million | $6.27 | 10.79 |
| Chanticleer Holdings | $41.45 million | 0.17 | -$338,557.00 | ($4.40) | -0.66 |
Bob Evans Farms has higher revenue and earnings than Chanticleer Holdings. Chanticleer Holdings 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.
Summary
Bob Evans Farms beats Chanticleer Holdings on 11 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.
About Chanticleer Holdings
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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