Contrasting Chanticleer (BURG) and Bob Evans Farms (BOBE)

Chanticleer (NASDAQ: BURG) and Bob Evans Farms (NASDAQ:BOBE) are both small-cap cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Profitability

This table compares Chanticleer and Bob Evans Farms’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chanticleer -15.66% -48.28% -19.80%
Bob Evans Farms 19.49% 19.52% 7.55%

Analyst Ratings

This is a breakdown of current ratings and target prices for Chanticleer and Bob Evans Farms, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chanticleer 0 0 0 0 N/A
Bob Evans Farms 0 7 1 0 2.13

Bob Evans Farms has a consensus price target of $75.92, indicating a potential downside of 2.21%. Given Bob Evans Farms’ higher possible upside, analysts plainly believe Bob Evans Farms is more favorable than Chanticleer.

Earnings and Valuation

This table compares Chanticleer and Bob Evans Farms’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Chanticleer $41.70 million 0.18 -$9.07 million ($2.88) -0.85
Bob Evans Farms $394.84 million 3.94 $126.46 million $6.16 12.60

Bob Evans Farms has higher revenue and earnings than Chanticleer. Chanticleer 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.

Risk and Volatility

Chanticleer has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Bob Evans Farms has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Dividends

Bob Evans Farms pays an annual dividend of $1.36 per share and has a dividend yield of 1.8%. Chanticleer does not pay a dividend. Bob Evans Farms pays out 22.1% of its earnings in the form of a dividend. Chanticleer has increased its dividend for 9 consecutive years.

Institutional and Insider Ownership

81.8% of Bob Evans Farms shares are held by institutional investors. 2.5% of Chanticleer shares are held by company insiders. Comparatively, 1.2% of Bob Evans Farms shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Bob Evans Farms beats Chanticleer on 11 of the 15 factors compared between the two stocks.

About Chanticleer

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.

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.

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