Del Frisco’s Restaurant Group (NASDAQ: DFRG) and Denny’s Corporation (NASDAQ:DENN) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitabiliy, risk and institutional ownership.

Risk and Volatility

Del Frisco’s Restaurant Group has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Denny’s Corporation has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Institutional & Insider Ownership

97.1% of Del Frisco’s Restaurant Group shares are owned by institutional investors. Comparatively, 89.2% of Denny’s Corporation shares are owned by institutional investors. 2.4% of Del Frisco’s Restaurant Group shares are owned by insiders. Comparatively, 5.2% of Denny’s Corporation 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.

Earnings & Valuation

This table compares Del Frisco’s Restaurant Group and Denny’s Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Del Frisco’s Restaurant Group $356.76 million 0.86 $41.74 million $0.56 25.09
Denny’s Corporation $510.22 million 1.58 $93.18 million $0.25 46.08

Denny’s Corporation has higher revenue and earnings than Del Frisco’s Restaurant Group. Del Frisco’s Restaurant Group is trading at a lower price-to-earnings ratio than Denny’s Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Del Frisco’s Restaurant Group and Denny’s Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Del Frisco’s Restaurant Group 0 3 2 0 2.40
Denny’s Corporation 0 2 1 0 2.33

Del Frisco’s Restaurant Group presently has a consensus target price of $18.75, suggesting a potential upside of 33.45%. Denny’s Corporation has a consensus target price of $12.67, suggesting a potential upside of 9.95%. Given Del Frisco’s Restaurant Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Del Frisco’s Restaurant Group is more favorable than Denny’s Corporation.

Profitability

This table compares Del Frisco’s Restaurant Group and Denny’s Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Del Frisco’s Restaurant Group 3.73% 7.39% 4.77%
Denny’s Corporation 3.49% -68.77% 13.82%

Summary

Del Frisco’s Restaurant Group beats Denny’s Corporation on 8 of the 14 factors compared between the two stocks.

About Del Frisco’s Restaurant Group

Del Frisco’s Restaurant Group, Inc. develops, owns and operates three contemporary, complementary restaurants: Del Frisco’s Double Eagle Steak House (Del Frisco’s), Sullivan’s Steakhouse (Sullivan’s) and Del Frisco’s Grille (the Grille). As of December 27, 2016, the Company operated 53 restaurants in 24 states and the District of Columbia in the United States. The Company’s segments include Del Frisco’s, Sullivan’s and the Grille. Del Frisco’s is a steakhouse concept in the United States. The Del Frisco’s brand’s menu includes the United States Department of Agriculture (USDA) Prime grade, wet-aged steaks hand-cut at the time of order and a range of other offerings, including prime lamb, fresh seafood, and signature side dishes and desserts. Each restaurant has a sommelier to guide diners through a wine list. As of December 27, 2016, the Company operated 12 Del Frisco’s steakhouses in nine states and the District of Columbia. Sullivan’s is a complementary concept to Del Frisco’s.

About Denny’s Corporation

Denny’s Corporation (Denny’s) operates a franchised full-service restaurant chain. The Company, through its subsidiary, Denny’s, Inc., owns and operates the Denny’s brand. As of December 28, 2016, the Denny’s brand consisted of 1,733 franchised, licensed and Company-operated restaurants around the world, including 1,610 restaurants in the United States and 123 international locations. As of December 28, 2016, 1,564 of its restaurants were franchised or licensed and 169 were Company-operated. In addition to its breakfast-all-day items, Denny’s offers a selection of lunch and dinner items, including burgers, sandwiches, salads and skillet entrees, along with an assortment of beverages, appetizers and desserts. The Company’s Fit Fare menu helps its guests identify items suited to their dietary needs. Most Denny’s restaurants offer special items for children and seniors. The Company has restaurant locations within travel centers, primarily with Pilot and Pilot Flying J Travel Centers.

Receive News & Ratings for Del Frisco's Restaurant Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Del Frisco's Restaurant Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.