Chanticleer Holdings (NASDAQ: HOTR) and Famous Dave’s of America (NASDAQ:DAVE) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitabiliy, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Chanticleer Holdings and Famous Dave’s of America, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chanticleer Holdings 0 0 0 0 N/A
Famous Dave’s of America 0 0 0 0 N/A

Earnings and Valuation

This table compares Chanticleer Holdings and Famous Dave’s of America’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chanticleer Holdings $41.45 million 0.17 -$338,557.00 ($4.40) -0.65
Famous Dave’s of America $97.67 million 0.25 $2.90 million ($0.65) -5.31

Famous Dave’s of America has higher revenue and earnings than Chanticleer Holdings. Famous Dave’s of America is trading at a lower price-to-earnings ratio than Chanticleer Holdings, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

31.8% of Chanticleer Holdings shares are held by institutional investors. Comparatively, 60.5% of Famous Dave’s of America shares are held by institutional investors. 2.5% of Chanticleer Holdings shares are held by company insiders. Comparatively, 27.0% of Famous Dave’s of America shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Chanticleer Holdings has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Famous Dave’s of America has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Profitability

This table compares Chanticleer Holdings and Famous Dave’s of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chanticleer Holdings -22.89% -34.68% -14.53%
Famous Dave’s of America -4.59% 1.13% 0.44%

Summary

Famous Dave’s of America beats Chanticleer Holdings on 9 of the 10 factors compared between the two stocks.

About Chanticleer Holdings

Chanticleer Holdings, Inc. is engaged in the business of owning, operating and franchising fast casual dining concepts domestically and internationally. The Company’s brands include Hooters, American Burger Company (ABC), BGR: the Burger Joint (BGR), BT’s Burger Joint (BT), Little Big Burger (LBB) and Just Fresh. Hooters restaurants are casual beach-themed establishments featuring music, sports on large flat screens, and a menu that includes seafood, burgers, salads and Hooters original chicken wings. ABC is a fast casual dining chain located in North Carolina, South Carolina and New York. BGR consists of approximately 10 Company-owned locations in the United States and over 13 franchisee-operated locations in the United States and the Middle East. LBB consists of approximately eight locations in Oregon. Just Fresh consists of approximately seven Company owned locations in Charlotte, North Carolina.

About Famous Dave’s of America

Famous Dave’s of America, Inc. (Famous Dave’s) operates restaurants. The Company’s restaurants, which offer full table service, feature wood-smoked and off-the-grill entree favorites that fit into the barbeque category. It has the Company-owned and franchise-operated restaurants in the United States, the Commonwealth of Puerto Rico, and Canada, and it operates within the industry segment of foodservice. It operates approximately 179 Famous Dave’s restaurants in over 33 states, the Commonwealth of Puerto Rico and Canada, including over 44 the Company-owned restaurants and approximately 135 franchise-operated restaurants. Each restaurant features a selection of hickory-smoked and off-the-grill barbecue favorites, such as flame-grilled St. Louis-style and baby back ribs, Texas beef brisket, Georgia chopped pork, country-roasted chicken, and signature sandwiches and salads. Its restaurants offer side items, such as corn bread, potato salad, coleslaw, Shack Fries and Wilbur Beans.

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