Texas Roadhouse (NASDAQ:TXRH) and Bojangles (NASDAQ:BOJA) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Valuation & Earnings

This table compares Texas Roadhouse and Bojangles’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Texas Roadhouse $2.46 billion 1.59 $158.23 million $2.20 24.75
Bojangles $547.44 million 0.00 $72.00 million $0.83 N/A

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

Volatility & Risk

Texas Roadhouse has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Bojangles has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Dividends

Texas Roadhouse pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Bojangles does not pay a dividend. Texas Roadhouse pays out 54.5% of its earnings in the form of a dividend. Texas Roadhouse has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Texas Roadhouse and Bojangles, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Texas Roadhouse 2 11 8 0 2.29
Bojangles 0 2 0 0 2.00

Texas Roadhouse presently has a consensus target price of $62.42, indicating a potential upside of 14.64%. Bojangles has a consensus target price of $16.00, indicating a potential upside of ∞. Given Bojangles’ higher possible upside, analysts plainly believe Bojangles is more favorable than Texas Roadhouse.

Institutional and Insider Ownership

87.5% of Texas Roadhouse shares are held by institutional investors. Comparatively, 90.5% of Bojangles shares are held by institutional investors. 5.9% of Texas Roadhouse shares are held by insiders. Comparatively, 52.9% of Bojangles shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Texas Roadhouse and Bojangles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Texas Roadhouse 5.99% 16.30% 9.37%
Bojangles 9.42% 9.95% 5.18%

Summary

Texas Roadhouse beats Bojangles on 10 of the 16 factors compared between the two stocks.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises Texas Roadhouse and Bubba's 33 restaurants. As of April 29, 2019, it owned and operated approximately 590 restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

About Bojangles

Bojangles', Inc. develops, operates, and franchises limited service restaurants in the United States. Its restaurants offer made-from-scratch biscuit breakfast sandwiches, hand-breaded bone-in chicken, fixin's, and iced tea. As of July 1, 2018, the company operated 766 system-wide restaurants, including 325 company-operated and 441 franchised restaurants primarily located in the Southeastern United States. Bojangles', Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.

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