Critical Comparison: SSP Group (OTCMKTS:SSPPF) and Dave & Buster’s Entertainment (NASDAQ:PLAY)

SSP Group (OTCMKTS:SSPPF) and Dave & Buster’s Entertainment (NASDAQ:PLAY) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Volatility and Risk

SSP Group has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Earnings & Valuation

This table compares SSP Group and Dave & Buster’s Entertainment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SSP Group	$4.75 billion	0.36	-$97.17 million	N/A	N/A
Dave & Buster’s Entertainment	$2.10 billion	0.21	-$48.70 million	($1.43)	-8.94

Dave & Buster’s Entertainment has lower revenue, but higher earnings than SSP Group.

Profitability

This table compares SSP Group and Dave & Buster’s Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SSP Group	N/A	N/A	N/A
Dave & Buster’s Entertainment	-2.32%	-7.93%	-0.26%

Analyst Recommendations

This is a summary of current ratings and target prices for SSP Group and Dave & Buster’s Entertainment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SSP Group	0	2	1	0	2.33
Dave & Buster’s Entertainment	2	3	3	0	2.13

Dave & Buster’s Entertainment has a consensus target price of $21.83, suggesting a potential upside of 70.84%. Given Dave & Buster’s Entertainment’s higher possible upside, analysts clearly believe Dave & Buster’s Entertainment is more favorable than SSP Group.

Institutional & Insider Ownership

91.4% of Dave & Buster’s Entertainment shares are held by institutional investors. 1.7% of Dave & Buster’s Entertainment shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

About SSP Group

SSP Group plc operates food and beverage outlets in North America, Europe, the United Kingdom, Ireland, the Asia Pacific, Eastern Europe, the Middle East, and internationally. The company operates outlets at airports, railway stations, motorway service areas, hospitals, and shopping centers. It also operates sandwich shops, cafes, bars, and restaurants. SSP Group plc was founded in 1961 and is headquartered in London, the United Kingdom.

About Dave & Buster’s Entertainment

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.