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 businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

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

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%

Valuation and Earnings

This table compares Cosi and Dave & Buster’s Entertainment’s gross 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 2.64 $254.99 million $2.36 28.33

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.

Institutional & Insider 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cosi and Dave & Buster’s Entertainment, as provided 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 target price of $73.50, suggesting a potential upside of 9.95%. Given Dave & Buster’s Entertainment’s higher possible upside, analysts clearly believe Dave & Buster’s Entertainment is more favorable than Cosi.

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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