Del Frisco’s Restaurant Group (NASDAQ:DFRG) & Chanticleer (NASDAQ:BURG) Critical Analysis

Del Frisco’s Restaurant Group (NASDAQ:DFRG) and Chanticleer (NASDAQ:BURG) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Del Frisco’s Restaurant Group and Chanticleer, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Del Frisco’s Restaurant Group 0 3 0 0 2.00
Chanticleer 0 0 1 0 3.00

Del Frisco’s Restaurant Group currently has a consensus price target of $8.67, suggesting a potential upside of 8.74%. Chanticleer has a consensus price target of $3.50, suggesting a potential upside of 360.53%. Given Chanticleer’s stronger consensus rating and higher probable upside, analysts plainly believe Chanticleer is more favorable than Del Frisco’s Restaurant Group.

Earnings & Valuation

This table compares Del Frisco’s Restaurant Group and Chanticleer’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Del Frisco’s Restaurant Group $378.22 million 0.70 -$76.30 million ($0.18) -44.28
Chanticleer $40.61 million 0.07 -$6.85 million ($1.45) -0.52

Chanticleer has lower revenue, but higher earnings than Del Frisco’s Restaurant Group. Del Frisco’s Restaurant Group is trading at a lower price-to-earnings ratio than Chanticleer, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Del Frisco’s Restaurant Group and Chanticleer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Del Frisco’s Restaurant Group -21.62% -1.15% -0.36%
Chanticleer -15.02% -70.24% -17.75%

Risk & Volatility

Del Frisco’s Restaurant Group has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Chanticleer has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500.

Insider and Institutional Ownership

6.7% of Chanticleer shares are owned by institutional investors. 2.0% of Del Frisco’s Restaurant Group shares are owned by insiders. Comparatively, 18.8% of Chanticleer shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Chanticleer beats Del Frisco’s Restaurant Group on 9 of the 14 factors compared between the two stocks.

About Del Frisco’s Restaurant Group

Del Frisco's Restaurant Group, Inc. develops, owns, and operates restaurants in the United States. It owns and operates restaurants under the Del Frisco's Double Eagle Steak House, Del Frisco's Grille, Barcelona Wine Bar, and bartaco brand names. The company offers steaks, as well as other menu selections, such as chops, fresh seafood, tapas, street food, and wines and cocktails. As of November 6, 2018, it operated 69 restaurants in 16 states and the District of Columbia. The company was founded in 1981 and is headquartered in Irving, Texas.

About Chanticleer

There is no company description available for Chanticleer Holdings Inc.

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