CEC Entertainment (NYSE: CEC) and Popeyes Louisiana Kitchen (NASDAQ:PLKI) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.
Volatility and Risk
CEC Entertainment has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Popeyes Louisiana Kitchen has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.
Valuation and Earnings
This table compares CEC Entertainment and Popeyes Louisiana Kitchen’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Popeyes Louisiana Kitchen||N/A||N/A||N/A||$1.98||39.90|
CEC Entertainment is trading at a lower price-to-earnings ratio than Popeyes Louisiana Kitchen, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for CEC Entertainment and Popeyes Louisiana Kitchen, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Popeyes Louisiana Kitchen||1||4||1||0||2.00|
Popeyes Louisiana Kitchen has a consensus price target of $69.75, suggesting a potential downside of 11.71%.
This table compares CEC Entertainment and Popeyes Louisiana Kitchen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Popeyes Louisiana Kitchen||15.08%||490.51%||15.48%|
Institutional & Insider Ownership
97.6% of Popeyes Louisiana Kitchen shares are held by institutional investors. 2.2% of Popeyes Louisiana Kitchen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Popeyes Louisiana Kitchen beats CEC Entertainment on 6 of the 8 factors compared between the two stocks.
CEC Entertainment Company Profile
CEC Entertainment, Inc. is engaged in the family dining and entertainment center business. The Company develops, operates and franchises family dining and entertainment centers under the name Chuck E. Cheese’s. Chuck E. Cheese’s stores feature musical and comic entertainment by robotic and animated characters, arcade-style and skill-oriented games, video games, rides and other activities. All of its stores offer dining selections consisting of a range of beverages, pizzas, sandwiches, appetizers, a salad bar and desserts. As of January 1, 2012, the Company and its franchisees operated a total of 556 Chuck E. Cheese’s stores. As of January 1, 2012, it operated 507 Company-owned Chuck E. Cheese’s stores located in 44 states and Canada and its franchisees operated a total of 49 stores located in 15 states, Puerto Rico, Guam, Guatemala, Chile, Saudi Arabia and the United Arab Emirates. In February 2014, Apollo Global Management, LLC completed the acquisition of CEC Entertainment Inc.
Popeyes Louisiana Kitchen Company Profile
Popeyes Louisiana Kitchen, Inc. (Popeyes) develops, operates and franchises quick-service restaurants (QSRs) under the trade names Popeyes Louisiana Kitchen and Popeyes Chicken & Biscuits. The Company conducts its operations through two segments: franchise operations and Company-operated restaurants. The Company-operated restaurant segment includes the operation of Company-owned restaurants. The franchise operations segment consists of domestic and international franchising activities. The Company’s Louisiana style menu features spicy chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. As of December 25, 2016, the Company operated and franchised 2,688 Popeyes restaurants in 48 states, the District of Columbia, three territories and 25 foreign countries. As of December 25, 2016, of the 55 Company-operated restaurants, approximately 84% were concentrated in Louisiana, North Carolina and Tennessee.
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