Critical Comparison: El Pollo Loco (NASDAQ:LOCO) vs. California Beach Restaurants (OTCMKTS:CBHR)

El Pollo Loco (NASDAQ:LOCO) and California Beach Restaurants (OTCMKTS:CBHR) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Volatility and Risk

El Pollo Loco has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, California Beach Restaurants has a beta of 8.62, suggesting that its stock price is 762% more volatile than the S&P 500.

Earnings and Valuation

This table compares El Pollo Loco and California Beach Restaurants’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
El Pollo Loco $426.09 million 1.27 $24.47 million $0.78 18.97
California Beach Restaurants N/A N/A N/A N/A N/A

El Pollo Loco has higher revenue and earnings than California Beach Restaurants.

Insider and Institutional Ownership

46.9% of El Pollo Loco shares are owned by institutional investors. 47.9% of El Pollo Loco shares are owned by insiders. Comparatively, 49.5% of California Beach Restaurants shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for El Pollo Loco and California Beach Restaurants, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
El Pollo Loco 0 1 1 0 2.50
California Beach Restaurants 0 0 0 0 N/A

El Pollo Loco presently has a consensus price target of $21.50, suggesting a potential upside of 45.27%. Given El Pollo Loco’s higher probable upside, equities research analysts plainly believe El Pollo Loco is more favorable than California Beach Restaurants.

Profitability

This table compares El Pollo Loco and California Beach Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
El Pollo Loco 6.24% 11.03% 5.11%
California Beach Restaurants N/A N/A N/A

Summary

El Pollo Loco beats California Beach Restaurants on 7 of the 9 factors compared between the two stocks.

About El Pollo Loco

El Pollo Loco Holdings, Inc. engages in the development, franchising, licensing, and operation of quick-service restaurants under the name El Pollo Loco. It specializes in fire-grilling fresh citrus-marinated chicken with variety of offerings which include Chicken Avocado Burrito, Pollo Fit entrees, chicken tostada salads, and Pollo Bowls. The company was founded in 1975 and is headquartered in Costa Mesa, CA.

About California Beach Restaurants

California Beach Restaurants, Inc., through its wholly owned subsidiary, Sea View Restaurants, Inc., engages in the ownership and operation of Gladstone's 4 Fish restaurant in Pacific Palisades, California.

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