FAT Brands (NASDAQ:FAT) and Carrols Restaurant Group (NASDAQ:TAST) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Analyst Recommendations
This is a summary of recent recommendations and price targets for FAT Brands and Carrols Restaurant Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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FAT Brands | 0 | 0 | 1 | 0 | 3.00 |
Carrols Restaurant Group | 0 | 0 | 6 | 0 | 3.00 |
FAT Brands currently has a consensus price target of $8.00, indicating a potential downside of 6.32%. Carrols Restaurant Group has a consensus price target of $7.5833, indicating a potential upside of 22.71%. Given Carrols Restaurant Group's higher probable upside, analysts clearly believe Carrols Restaurant Group is more favorable than FAT Brands.
Volatility & Risk
FAT Brands has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500. Comparatively, Carrols Restaurant Group has a beta of 2.61, indicating that its stock price is 161% more volatile than the S&P 500.
Institutional & Insider Ownership
1.6% of FAT Brands shares are held by institutional investors. Comparatively, 49.7% of Carrols Restaurant Group shares are held by institutional investors. 4.3% of FAT Brands shares are held by insiders. Comparatively, 22.0% of Carrols Restaurant Group shares are held 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.
Profitability
This table compares FAT Brands and Carrols Restaurant Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
FAT Brands | -48.26% | -553.81% | -5.65% |
Carrols Restaurant Group | -1.36% | -3.46% | -0.58% |
Valuation and Earnings
This table compares FAT Brands and Carrols Restaurant Group's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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FAT Brands | $22.50 million | 4.53 | $-1,020,000.00 | ($0.09) | -94.89 |
Carrols Restaurant Group | $1.46 billion | 0.22 | $-31,920,000.00 | ($0.36) | -17.17 |
FAT Brands has higher earnings, but lower revenue than Carrols Restaurant Group. FAT Brands is trading at a lower price-to-earnings ratio than Carrols Restaurant Group, indicating that it is currently the more affordable of the two stocks.
Summary
Carrols Restaurant Group beats FAT Brands on 9 of the 13 factors compared between the two stocks.