Chuy’s Holdings (NASDAQ: CHUY) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Institutional & Insider Ownership

99.9% of Chuy’s Holdings shares are owned by institutional investors. Comparatively, 85.8% of Cracker Barrel Old Country Store shares are owned by institutional investors. 3.3% of Chuy’s Holdings shares are owned by insiders. Comparatively, 1.0% of Cracker Barrel Old Country Store shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Chuy’s Holdings and Cracker Barrel Old Country Store, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chuy’s Holdings 0 6 2 0 2.25
Cracker Barrel Old Country Store 1 7 0 0 1.88

Chuy’s Holdings presently has a consensus price target of $27.88, indicating a potential upside of 38.34%. Cracker Barrel Old Country Store has a consensus price target of $161.00, indicating a potential upside of 9.30%. Given Chuy’s Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Chuy’s Holdings is more favorable than Cracker Barrel Old Country Store.

Profitability

This table compares Chuy’s Holdings and Cracker Barrel Old Country Store’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chuy’s Holdings 4.86% 11.16% 7.30%
Cracker Barrel Old Country Store 6.90% 35.49% 13.26%

Earnings & Valuation

This table compares Chuy’s Holdings and Cracker Barrel Old Country Store’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chuy’s Holdings $346.03 million 0.98 $41.16 million $0.99 20.35
Cracker Barrel Old Country Store $2.93 billion 1.21 $399.48 million $8.38 17.58

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

Volatility & Risk

Chuy’s Holdings has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.3%. Chuy’s Holdings does not pay a dividend. Cracker Barrel Old Country Store pays out 57.3% of its earnings in the form of a dividend. Cracker Barrel Old Country Store has increased its dividend for 7 consecutive years.

Summary

Cracker Barrel Old Country Store beats Chuy’s Holdings on 10 of the 17 factors compared between the two stocks.

About Chuy’s Holdings

Chuy’s Holdings, Inc. operates Chuy’s, a restaurant concept offering a distinct menu of authentic, freshly prepared Mexican and Tex-Mex inspired food. As of December 25, 2016, the Company operated 80 Chuy’s restaurants across 16 states. The Company offers the same menu during lunch and dinner, which includes enchiladas, fajitas, tacos, burritos, combination platters and daily specials, complemented by a range of appetizers, soups and salads. Each of the Company’s restaurants offers a range of homemade sauces, including the signature Hatch green chile and creamy jalapeno sauces. The Company also offers a full-service bar in all of its restaurants providing its customers a range of beverage offerings, featuring a selection of specialty cocktails including its signature on-the-rocks margaritas made with fresh, hand-squeezed lime juice, and the Texas Martini, a made-to-order, hand-shaken cocktail served with jalapeno-stuffed olives.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods. Its restaurants offer home-style country cooking featuring of its own recipes. Its restaurants serve breakfast, lunch and dinner. Its breakfast items include juices, eggs, pancakes, grits, and a range of biscuit specialties. Its lunch and dinner items include country ham, chicken and dumplings, chicken fried chicken, meatloaf, fresh side items and specialty items, such as pinto beans and turnip greens.

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