Dave & Buster’s Entertainment (NASDAQ: PLAY) and Cosi (NASDAQ:COSI) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Insider & Institutional Ownership
37.6% of Cosi shares are owned by institutional investors. 5.6% of Dave & Buster’s Entertainment shares are owned by insiders. Comparatively, 7.8% of Cosi shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Dave & Buster’s Entertainment and Cosi, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave & Buster’s Entertainment | 0 | 0 | 9 | 0 | 3.00 |
| Cosi | 0 | 0 | 0 | 0 | N/A |
Dave & Buster’s Entertainment currently has a consensus target price of $77.50, suggesting a potential upside of 25.69%. Given Dave & Buster’s Entertainment’s higher possible upside, research analysts clearly believe Dave & Buster’s Entertainment is more favorable than Cosi.
Risk and Volatility
Dave & Buster’s Entertainment has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Cosi has a beta of -0.67, suggesting that its share price is 167% less volatile than the S&P 500.
Earnings & Valuation
This table compares Dave & Buster’s Entertainment and Cosi’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Dave & Buster’s Entertainment | $1.05 billion | 2.44 | $254.99 million | $2.36 | 26.13 |
| Cosi | N/A | N/A | N/A | ($0.31) | -0.09 |
Dave & Buster’s Entertainment has higher revenue and earnings than Cosi. Cosi is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Dave & Buster’s Entertainment and Cosi’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dave & Buster’s Entertainment | 9.78% | 22.71% | 9.34% |
| Cosi | -13.67% | -96.97% | -38.82% |
Summary
Dave & Buster’s Entertainment beats Cosi on 8 of the 10 factors compared between the two stocks.
About Cosi
Cosi, Inc. is an international fast casual restaurant company. The Company offers its flatbread. Its menu features made-to-order sandwiches, hand-tossed salads, bowls, breakfast wraps, melts, soups, signature Squagels, artisan flatbread pizzas, S’mores, snacks and desserts. It also offers handcrafted beverages and a variety of coffee-based and specialty beverages. Its sandwiches include tbm, turkey and brie, tuna, turkey avocado and chicken parmesan melt. Its cosi salads are made with fresh ingredients and its own signature dressings. Its soups include tomato basil, turkey chili, smart fit chicken noodle, and mediterranean lentil. Its handcrafted beverages include iced tea, raspberry iced tea, country club iced tea, mojito lemonade, raspberry mojito lemonade. It also offers catering services to its customers. The Company operates in 43 Company-owned and 30 franchise restaurants in fourteen states in the United States, the District of Columbia, Costa Rica and the United Arab Emirates.
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