Bojangles’ Famous Chicken ‘n Biscuits (NASDAQ: BOJA) and Red Robin Gourmet Burgers (NASDAQ:RRGB) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Risk & Volatility
Bojangles’ Famous Chicken ‘n Biscuits has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.
This table compares Bojangles’ Famous Chicken ‘n Biscuits and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bojangles’ Famous Chicken ‘n Biscuits||13.15%||13.17%||5.66%|
|Red Robin Gourmet Burgers||2.17%||8.63%||3.57%|
Earnings & Valuation
This table compares Bojangles’ Famous Chicken ‘n Biscuits and Red Robin Gourmet Burgers’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bojangles’ Famous Chicken ‘n Biscuits||$547.44 million||0.93||$72.00 million||$0.83||16.77|
|Red Robin Gourmet Burgers||$1.38 billion||0.55||$30.01 million||$2.49||23.41|
Bojangles’ Famous Chicken ‘n Biscuits has higher earnings, but lower revenue than Red Robin Gourmet Burgers. Bojangles’ Famous Chicken ‘n Biscuits is trading at a lower price-to-earnings ratio than Red Robin Gourmet Burgers, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Bojangles’ Famous Chicken ‘n Biscuits and Red Robin Gourmet Burgers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bojangles’ Famous Chicken ‘n Biscuits||0||8||1||0||2.11|
|Red Robin Gourmet Burgers||0||4||6||0||2.60|
Bojangles’ Famous Chicken ‘n Biscuits currently has a consensus target price of $16.14, indicating a potential upside of 15.97%. Red Robin Gourmet Burgers has a consensus target price of $67.50, indicating a potential upside of 15.78%. Given Bojangles’ Famous Chicken ‘n Biscuits’ higher possible upside, equities analysts plainly believe Bojangles’ Famous Chicken ‘n Biscuits is more favorable than Red Robin Gourmet Burgers.
Insider & Institutional Ownership
92.7% of Bojangles’ Famous Chicken ‘n Biscuits shares are owned by institutional investors. 55.3% of Bojangles’ Famous Chicken ‘n Biscuits shares are owned by insiders. Comparatively, 2.7% of Red Robin Gourmet Burgers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Bojangles’ Famous Chicken ‘n Biscuits beats Red Robin Gourmet Burgers on 9 of the 14 factors compared between the two stocks.
About Bojangles’ Famous Chicken ‘n Biscuits
Bojangles', Inc. develops, operates, and franchises limited service restaurants in the United States. Its restaurants offer made-from-scratch biscuit breakfast sandwiches, hand-breaded bone-in chicken, fixin's, and iced tea. As of December 31, 2017, the company operated 764 system-wide restaurants, including 325 company-operated and 439 franchised restaurants primarily located in the Southeastern United States. Bojangles', Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.
About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, primarily develops, operates, and franchises full-service restaurants in North America and focuses on serving selection of gourmet burgers. The Company’s menu features a line of gourmet burgers, which it makes from ground beef, as well as its line of Red’s Tavern Double Burgers and its Red Robin’s line of half-pound Angus beef burgers with various toppings. The Company also offers burgers made from chicken breasts, fish fillets, turkey patties, as well as vegetarian and vegan options. The Company offered a selection of buns, including ciabatta, gluten free, sesame, onion, whole grain, jalapeno and lettuce wraps a range of toppings, including fresh guacamole, house made barbeque sauces, aiolis, grilled pineapple, crispy onion straws, sauteed mushrooms, fried jalapenos, bruschetta salsa, coleslaw, eight different cheese choices and a fried egg, as of December 25, 2016.
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