Financial Review: Latitude 360 (OTCMKTS:LATX) & Texas Roadhouse (NASDAQ:TXRH)

Latitude 360 (OTCMKTS:LATX) and Texas Roadhouse (NASDAQ:TXRH) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Latitude 360 and Texas Roadhouse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latitude 360	0	0	0	0	0.00
Texas Roadhouse	0	13	12	1	2.54

Texas Roadhouse has a consensus target price of $196.55, indicating a potential upside of 7.48%. Given Texas Roadhouse’s stronger consensus rating and higher possible upside, analysts plainly believe Texas Roadhouse is more favorable than Latitude 360.

Earnings & Valuation

This table compares Latitude 360 and Texas Roadhouse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latitude 360	N/A	N/A	N/A	N/A	N/A
Texas Roadhouse	$5.88 billion	2.06	$405.55 million	$6.09	30.03

Texas Roadhouse has higher revenue and earnings than Latitude 360.

Profitability

This table compares Latitude 360 and Texas Roadhouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latitude 360	N/A	N/A	N/A
Texas Roadhouse	6.90%	27.88%	12.23%

Insider and Institutional Ownership

94.8% of Texas Roadhouse shares are held by institutional investors. 24.5% of Latitude 360 shares are held by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Texas Roadhouse beats Latitude 360 on 9 of the 10 factors compared between the two stocks.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.