Chipotle Mexican Grill (NYSE: CMG) and Papa Murphy’s Holdings (NASDAQ:FRSH) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Profitability

This table compares Chipotle Mexican Grill and Papa Murphy’s Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chipotle Mexican Grill 3.17% 10.65% 7.38%
Papa Murphy’s Holdings -8.43% 3.16% 1.15%

Analyst Ratings

This is a breakdown of current ratings and target prices for Chipotle Mexican Grill and Papa Murphy’s Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chipotle Mexican Grill 5 21 9 0 2.11
Papa Murphy’s Holdings 0 4 0 0 2.00

Chipotle Mexican Grill presently has a consensus price target of $371.70, suggesting a potential upside of 15.99%. Papa Murphy’s Holdings has a consensus price target of $4.75, suggesting a potential downside of 13.64%. Given Chipotle Mexican Grill’s stronger consensus rating and higher possible upside, equities analysts plainly believe Chipotle Mexican Grill is more favorable than Papa Murphy’s Holdings.

Volatility & Risk

Chipotle Mexican Grill has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Papa Murphy’s Holdings has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.

Institutional and Insider Ownership

90.0% of Chipotle Mexican Grill shares are owned by institutional investors. Comparatively, 36.7% of Papa Murphy’s Holdings shares are owned by institutional investors. 2.0% of Chipotle Mexican Grill shares are owned by insiders. Comparatively, 3.1% of Papa Murphy’s Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Chipotle Mexican Grill and Papa Murphy’s Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chipotle Mexican Grill $4.31 billion 2.12 $397.78 million $4.74 67.61
Papa Murphy’s Holdings $125.10 million 0.75 $16.53 million ($0.63) -8.73

Chipotle Mexican Grill has higher revenue and earnings than Papa Murphy’s Holdings. Papa Murphy’s Holdings is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.

Summary

Chipotle Mexican Grill beats Papa Murphy’s Holdings on 13 of the 14 factors compared between the two stocks.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc. (Chipotle), together with its subsidiaries, operates Chipotle Mexican Grill restaurants. The Company’s Chipotle Mexican Grill restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. As of December 31, 2016, the Company managed its operations and restaurants based on 11 regions. As of December 31, 2016, the Company operated 2,198 Chipotle restaurants throughout the United States, as well as 29 international Chipotle restaurants, and it also had 23 restaurants in operation in other non-Chipotle concepts. As of December 31, 2016, 29 of its restaurants were located outside of the United States, with 17 in Canada, six in the United Kingdom, five in France and one in Frankfurt, Germany. The Company sells gift cards, which do not have an expiration date. The Company categorizes its restaurants as end-caps (at the end of a line of retail outlets), in-lines (in a line of retail outlets), free-standing or other.

About Papa Murphy’s Holdings

Papa Murphy’s Holdings, Inc. is a holding company. The Company, together with its subsidiaries, is a franchisor and operator of the Take ‘N’ Bake pizza chain in the United States. The Company franchises the right to operate Take ‘N’ Bake pizza franchises and operates Take ‘N’ Bake pizza stores owned by the Company. The Company operates through three segments: Domestic Company Stores, Domestic Franchise and International. Its Domestic Franchise segment consists of its domestic franchised stores, which represent its system-wide stores and derives its revenues from franchise and development fees and the collection of franchise royalties. The Domestic Company Stores segment consists of its Company-owned stores in the United States and derives its revenues from retail sales of pizza and side items to the general public. Its International segment consists of its stores outside of the United States, all of which are franchised and derives its revenues from franchise and development fees.

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