Wingstop (NASDAQ:WING) vs. California Beach Restaurants (OTCMKTS:CBHR) Critical Analysis

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

Valuation & Earnings

This table compares California Beach Restaurants and Wingstop”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Beach Restaurants	N/A	N/A	N/A	N/A	N/A
Wingstop	$625.81 million	10.27	$70.18 million	$3.71	60.46

Wingstop has higher revenue and earnings than California Beach Restaurants.

Volatility and Risk

California Beach Restaurants has a beta of 7.59, suggesting that its share price is 659% more volatile than the S&P 500. Comparatively, Wingstop has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Profitability

This table compares California Beach Restaurants and Wingstop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Beach Restaurants	N/A	N/A	N/A
Wingstop	17.37%	-21.59%	20.86%

Analyst Recommendations

This is a breakdown of current ratings for California Beach Restaurants and Wingstop, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Beach Restaurants	0	0	0	0	0.00
Wingstop	0	7	14	0	2.67

Wingstop has a consensus target price of $357.67, indicating a potential upside of 59.47%. Given Wingstop’s stronger consensus rating and higher probable upside, analysts plainly believe Wingstop is more favorable than California Beach Restaurants.

Summary

Wingstop beats California Beach Restaurants on 6 of the 8 factors compared between the two stocks.

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.

About Wingstop

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.