Chanticleer Holdings (NASDAQ: HOTR) and Aramark (NYSE:ARMK) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares Chanticleer Holdings and Aramark’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chanticleer Holdings $41.46 million 0.14 -$378,264.00 ($2.58) -0.88
Aramark $14.49 billion 0.67 $1.29 billion $1.37 28.81

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

Volatility and Risk

Chanticleer Holdings has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Aramark has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Chanticleer Holdings and Aramark, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chanticleer Holdings 0 0 0 0 N/A
Aramark 0 2 4 1 2.86

Aramark has a consensus target price of $43.14, indicating a potential upside of 9.31%. Given Aramark’s higher possible upside, analysts plainly believe Aramark is more favorable than Chanticleer Holdings.

Institutional & Insider Ownership

26.0% of Chanticleer Holdings shares are held by institutional investors. Comparatively, 95.7% of Aramark shares are held by institutional investors. 2.5% of Chanticleer Holdings shares are held by insiders. Comparatively, 2.9% of Aramark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Chanticleer Holdings and Aramark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chanticleer Holdings -14.01% -38.80% -16.45%
Aramark 2.37% 19.29% 4.11%

Dividends

Aramark pays an annual dividend of $0.41 per share and has a dividend yield of 1.0%. Chanticleer Holdings does not pay a dividend. Aramark pays out 29.9% of its earnings in the form of a dividend. Aramark has increased its dividend for 2 consecutive years.

Summary

Aramark beats Chanticleer Holdings on 14 of the 16 factors compared between the two stocks.

Chanticleer Holdings Company Profile

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.

Aramark Company Profile

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.

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