Cosi (NASDAQ: COSI) and Dave & Buster’s Entertainment (NASDAQ:PLAY) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitabiliy and dividends.

Risk and Volatility

Cosi has a beta of -0.67, meaning that its stock price is 167% less volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cosi and Dave & Buster’s Entertainment’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cosi N/A N/A N/A ($0.31) -0.09
Dave & Buster’s Entertainment $1.05 billion 2.62 $254.99 million $2.36 28.07

Dave & Buster’s Entertainment has higher revenue and earnings than Cosi. Cosi is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Cosi and Dave & Buster’s Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosi 0 0 0 0 N/A
Dave & Buster’s Entertainment 0 1 8 0 2.89

Dave & Buster’s Entertainment has a consensus price target of $73.50, indicating a potential upside of 10.94%. Given Dave & Buster’s Entertainment’s higher probable upside, analysts clearly believe Dave & Buster’s Entertainment is more favorable than Cosi.

Insider & Institutional Ownership

37.6% of Cosi shares are owned by institutional investors. 7.8% of Cosi shares are owned by company insiders. Comparatively, 5.6% of Dave & Buster’s Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Cosi -13.67% -96.97% -38.82%
Dave & Buster’s Entertainment 9.78% 22.71% 9.34%

Summary

Dave & Buster’s Entertainment beats Cosi on 8 of the 10 factors compared between the two stocks.

Cosi Company Profile

Cosi, Inc. is an international fast casual restaurant company. The Company offers its flatbread. Its menu features made-to-order sandwiches, hand-tossed salads, bowls, breakfast wraps, melts, soups, signature Squagels, artisan flatbread pizzas, S’mores, snacks and desserts. It also offers handcrafted beverages and a variety of coffee-based and specialty beverages. Its sandwiches include tbm, turkey and brie, tuna, turkey avocado and chicken parmesan melt. Its cosi salads are made with fresh ingredients and its own signature dressings. Its soups include tomato basil, turkey chili, smart fit chicken noodle, and mediterranean lentil. Its handcrafted beverages include iced tea, raspberry iced tea, country club iced tea, mojito lemonade, raspberry mojito lemonade. It also offers catering services to its customers. The Company operates in 43 Company-owned and 30 franchise restaurants in fourteen states in the United States, the District of Columbia, Costa Rica and the United Arab Emirates.

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