Fiesta Restaurant Group (NASDAQ:FRGI) and Nathan’s Famous (NASDAQ:NATH) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Volatility & Risk
Fiesta Restaurant Group has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500. Comparatively, Nathan’s Famous has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
39.9% of Nathan’s Famous shares are held by institutional investors. 1.5% of Fiesta Restaurant Group shares are held by company insiders. Comparatively, 31.5% of Nathan’s Famous shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Fiesta Restaurant Group and Nathan’s Famous’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fiesta Restaurant Group||-5.68%||-3.24%||-0.82%|
This is a summary of current recommendations and price targets for Fiesta Restaurant Group and Nathan’s Famous, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fiesta Restaurant Group||0||1||2||0||2.67|
Fiesta Restaurant Group currently has a consensus price target of $15.00, indicating a potential upside of 8.54%. Given Fiesta Restaurant Group’s higher possible upside, research analysts plainly believe Fiesta Restaurant Group is more favorable than Nathan’s Famous.
Earnings & Valuation
This table compares Fiesta Restaurant Group and Nathan’s Famous’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fiesta Restaurant Group||$660.94 million||0.55||-$84.39 million||$0.35||39.49|
|Nathan’s Famous||$103.32 million||2.62||$13.44 million||N/A||N/A|
Nathan’s Famous has lower revenue, but higher earnings than Fiesta Restaurant Group.
Nathan’s Famous beats Fiesta Restaurant Group on 7 of the 12 factors compared between the two stocks.
Fiesta Restaurant Group Company Profile
Fiesta Restaurant Group, Inc., through its subsidiaries, owns, operates, and franchises fast-casual restaurants. It operates its fast-casual restaurants under the Pollo Tropical and Taco Cabana brands. The company's Pollo Tropical restaurants offer fire-grilled and citrus marinated chicken, and other freshly prepared tropical inspired menu items; and Taco Cabana restaurants that provide Mexican inspired food made fresh by hand. As of January 3, 2021, it operated 138 company owned Pollo Tropical restaurants in Florida; 143 company owned Taco Cabana restaurants in Texas; and franchised 29 Pollo Tropical restaurants in the Puerto Rico, Panama, Guyana, Bahamas, Ecuador, and Florida, as well as franchised Taco Cabana restaurants six in New Mexico. Fiesta Restaurant Group, Inc. was incorporated in 2011 and is based in Dallas, Texas.
Nathan’s Famous Company Profile
Nathan's Famous, Inc., together with its subsidiaries, operates in the foodservice industry. The company owns and franchises restaurants under the Nathan's Famous brand name, as well as sells products bearing the Nathan's Famous trademarks through various channels of distribution. It also has license agreements for the manufacture, distribution, marketing, and sale of Nathan's Famous branded hot dogs, sausages, and corned beef products in refrigerated consumer packages to be resold through retail channels, such as supermarkets, groceries, mass merchandisers, and club stores; and other Nathan's Famous branded refrigerated meat products in consumer packages to be resold through retail channels. In addition, the company has license agreements to manufacture Nathan's Famous branded hot dog and sausage products in bulk for use in the food service industry; for supplying Nathan's Famous natural casing and skinless hot dogs in bulk for use in the Nathan's Famous restaurant system; to manufacture proprietary spices; to manufacture and sell various products, including mustard, salsa, sauerkraut, and pickles; to produce and sell French fries and onion rings for retail sale; and to manufacture and sell miniature bagel dogs, franks-in-a-blanket, and other hors d'oeuvres through club stores, supermarkets, and other retail food stores. Further, the company sells Nathan's products directly to end users or to various foodservice distributors, as well as provides Arthur Treacher's brand fish fillets. As of March 29, 2020, its restaurant system consisted of four company-owned units in the New York City metropolitan area; and 216 franchised units in 21 states and nine foreign countries. Nathan's Famous, Inc. was founded in 1916 and is based in Jericho, New York.
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