Wingstop (NASDAQ:WING) and Chuy’s (NASDAQ:CHUY) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Wingstop and Chuy’s, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wingstop 1 6 8 0 2.47
Chuy’s 0 7 1 0 2.13

Wingstop currently has a consensus target price of $60.71, indicating a potential downside of 12.63%. Chuy’s has a consensus target price of $27.57, indicating a potential upside of 2.34%. Given Chuy’s’ higher probable upside, analysts plainly believe Chuy’s is more favorable than Wingstop.

Earnings & Valuation

This table compares Wingstop and Chuy’s’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wingstop $105.55 million 19.27 $27.30 million $0.74 93.91
Chuy’s $369.59 million 1.24 $28.95 million $0.96 28.06

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

Risk and Volatility

Wingstop has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Chuy’s has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500.

Dividends

Wingstop pays an annual dividend of $0.36 per share and has a dividend yield of 0.5%. Chuy’s does not pay a dividend. Wingstop pays out 48.6% of its earnings in the form of a dividend.

Profitability

This table compares Wingstop and Chuy’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wingstop 22.15% -24.63% 19.93%
Chuy’s 7.39% 8.32% 5.79%

Summary

Wingstop beats Chuy’s on 8 of the 14 factors compared between the two stocks.

About Wingstop

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Its restaurants offer cooked-to-order, hand-sauced, and tossed chicken wings. As of February 22, 2018, the company operated approximately 1,000 restaurants the United States, Mexico, Singapore, the Philippines, Indonesia, the United Arab Emirates, Malaysia, Saudi Arabia, and Colombia. Wingstop Inc. was founded in 1994 and is headquartered in Dallas, Texas.

About Chuy’s

Chuy's Holdings, Inc., through its subsidiaries, owns and operates restaurants under the Chuy's name in Texas and 19 states in the Southeastern and Midwestern United States. As of December 31, 2017, the company operated 91 Chuy's restaurants in 19 states. Chuy's Holdings, Inc. was founded in 1982 and is headquartered in Austin, Texas.

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