Fiesta Restaurant Group (NASDAQ: FRGI) and Bojangles’ (NASDAQ:BOJA) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
91.7% of Fiesta Restaurant Group shares are held by institutional investors. Comparatively, 91.6% of Bojangles’ shares are held by institutional investors. 2.2% of Fiesta Restaurant Group shares are held by company insiders. Comparatively, 55.3% of Bojangles’ shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Fiesta Restaurant Group has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Bojangles’ has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Fiesta Restaurant Group and Bojangles’, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fiesta Restaurant Group | 0 | 6 | 1 | 0 | 2.14 |
| Bojangles’ | 0 | 5 | 3 | 2 | 2.70 |
Fiesta Restaurant Group currently has a consensus price target of $24.00, indicating a potential upside of 36.75%. Bojangles’ has a consensus price target of $19.50, indicating a potential upside of 43.38%. Given Bojangles”s stronger consensus rating and higher probable upside, analysts clearly believe Bojangles’ is more favorable than Fiesta Restaurant Group.
Profitability
This table compares Fiesta Restaurant Group and Bojangles”s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fiesta Restaurant Group | -2.75% | 11.77% | 6.95% |
| Bojangles’ | 6.70% | 17.05% | 6.47% |
Earnings and Valuation
This table compares Fiesta Restaurant Group and Bojangles”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Fiesta Restaurant Group | $701.79 million | 0.67 | $69.79 million | ($0.72) | -24.38 |
| Bojangles’ | $538.50 million | 0.93 | $79.81 million | $0.95 | 14.32 |
Bojangles’ has higher revenue, but lower earnings than Fiesta Restaurant Group. Fiesta Restaurant Group is trading at a lower price-to-earnings ratio than Bojangles’, indicating that it is currently the more affordable of the two stocks.
Summary
Bojangles’ beats Fiesta Restaurant Group on 11 of the 14 factors compared between the two stocks.
About Fiesta Restaurant Group
Fiesta Restaurant Group, Inc. owns, operates and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana through its subsidiaries Pollo Operations, Inc., and its subsidiaries, and Pollo Franchise, Inc., (collectively Pollo Tropical) and Taco Cabana, Inc. and its subsidiaries (collectively Taco Cabana). The Company operates through the Pollo Tropical and Taco Cabana segments. The Company’s Pollo Tropical restaurants offer Caribbean menu items, featuring its bone-in chicken marinated in blend of tropical fruit juices and grilled over an open flame. The Company also offers catering for parties and corporate events. The Company’s Taco Cabana restaurants serves Mexican food, including flame-grilled steak and chicken fajitas served on sizzling iron skillets, quesadillas, hand-rolled flautas, enchiladas, burritos, tacos, fresh-made flour tortillas, customizable salads served in its Cabana Bowl, and its breakfast tacos.
About Bojangles’
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Bojangles’, Inc. is a restaurant operator and franchisor. The Company offers food made from its Southern recipes. The Company’s menu includes its made-from-scratch, buttermilk biscuits baked fresh every 20 minutes; its fresh, never-frozen bone-in fried chicken; its fixin’s; its Bo-Smart menu featuring items, such as salads, grilled chicken sandwiches, roasted chicken bites and fat-free green beans; its freshly baked and delicious sweets menu, and its Legendary Iced Tea. The Company’s food is offered a la carte and in combos. The Company’s chicken, fixin’s, biscuits and Legendary Iced Tea may also be ordered in boxes or family meals, and larger combinations may be offered as tailgate specials or may be packaged in its Big Bo Box. The Company offers Southern style mac ‘n cheese made from two cheeses; fat-free green beans; cole slaw, and mashed potatoes with gravy. Its menu also features salads, sandwiches and its whole meat Roasted Chicken Bites.
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