Contrasting Aramark (ARMK) & Chanticleer (BURG)
Aramark (NYSE: ARMK) and Chanticleer (NASDAQ:BURG) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares Aramark and Chanticleer’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aramark||$14.60 billion||0.72||$373.92 million||$1.48||29.10|
|Chanticleer||$41.70 million||0.20||-$9.07 million||($2.58)||-1.05|
Aramark has higher revenue and earnings than Chanticleer. Chanticleer is trading at a lower price-to-earnings ratio than Aramark, indicating that it is currently the more affordable of the two stocks.
This table compares Aramark and Chanticleer’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Aramark has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Chanticleer has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Aramark and Chanticleer, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aramark presently has a consensus target price of $44.83, indicating a potential upside of 4.09%. Given Aramark’s higher probable upside, research analysts clearly believe Aramark is more favorable than Chanticleer.
Insider and Institutional Ownership
95.6% of Aramark shares are owned by institutional investors. Comparatively, 2.3% of Chanticleer shares are owned by institutional investors. 2.9% of Aramark shares are owned by insiders. Comparatively, 2.5% of Chanticleer shares are owned by 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.
Aramark pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. Chanticleer does not pay a dividend. Aramark pays out 28.4% of its earnings in the form of a dividend. Aramark has increased its dividend for 2 consecutive years.
Aramark beats Chanticleer on 14 of the 16 factors compared between the two stocks.
Aramark is a global provider of food, facilities and uniform services to education, healthcare, business and industry, and sports, leisure and corrections clients. The Company operates through three segments: Food and Support Services North America (FSS North America), Food and Support Services International (FSS International), and Uniform and Career Apparel (Uniform). FSS North America and FSS International segments include food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities. The Uniform segment includes rental, sale, cleaning, maintenance and delivery of personalized uniforms and other textile items to clients in a range of industries in the United States, Puerto Rico, Japan and Canada, including manufacturing, transportation, construction, restaurants and hotels, healthcare and pharmaceutical industries.
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.
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