Chuy's (NASDAQ: CHUY) and Papa John's Int'l (NASDAQ:PZZA) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
This table compares Chuy's and Papa John's Int'l’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Papa John's Int'l||5.79%||-366.49%||18.16%|
This is a breakdown of current ratings and price targets for Chuy's and Papa John's Int'l, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Papa John's Int'l||0||7||3||0||2.30|
Chuy's currently has a consensus target price of $26.89, indicating a potential upside of 3.02%. Papa John's Int'l has a consensus target price of $76.00, indicating a potential upside of 21.08%. Given Papa John's Int'l’s stronger consensus rating and higher possible upside, analysts clearly believe Papa John's Int'l is more favorable than Chuy's.
Papa John's Int'l pays an annual dividend of $0.90 per share and has a dividend yield of 1.4%. Chuy's does not pay a dividend. Papa John's Int'l pays out 34.2% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Chuy's and Papa John's Int'l’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chuy's||$369.59 million||1.19||$28.95 million||$1.01||25.84|
|Papa John's Int'l||$1.78 billion||1.18||$102.29 million||$2.63||23.87|
Papa John's Int'l has higher revenue and earnings than Chuy's. Papa John's Int'l is trading at a lower price-to-earnings ratio than Chuy's, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Chuy's has a beta of -0.28, indicating that its stock price is 128% less volatile than the S&P 500. Comparatively, Papa John's Int'l has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Insider and Institutional Ownership
95.6% of Chuy's shares are owned by institutional investors. Comparatively, 87.1% of Papa John's Int'l shares are owned by institutional investors. 3.3% of Chuy's shares are owned by insiders. Comparatively, 27.7% of Papa John's Int'l shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Papa John's Int'l beats Chuy's on 10 of the 16 factors compared between the two stocks.
Chuy's Company Profile
Chuy’s Holdings, Inc. operates Chuy’s, a restaurant concept offering a distinct menu of authentic, freshly prepared Mexican and Tex-Mex inspired food. As of December 25, 2016, the Company operated 80 Chuy’s restaurants across 16 states. The Company offers the same menu during lunch and dinner, which includes enchiladas, fajitas, tacos, burritos, combination platters and daily specials, complemented by a range of appetizers, soups and salads. Each of the Company’s restaurants offers a range of homemade sauces, including the signature Hatch green chile and creamy jalapeno sauces. The Company also offers a full-service bar in all of its restaurants providing its customers a range of beverage offerings, featuring a selection of specialty cocktails including its signature on-the-rocks margaritas made with fresh, hand-squeezed lime juice, and the Texas Martini, a made-to-order, hand-shaken cocktail served with jalapeno-stuffed olives.
Papa John's Int'l Company Profile
Papa John’s International, Inc. (Papa John’s) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark Papa John’s. The Company operates through five segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. As of December 25, 2016, there were 5,097 Papa John’s restaurants in operation, consisting of 744 Company-owned and 4,353 franchised restaurants operating domestically in all 50 states and in 45 countries and territories. It offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages.
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