CEC Entertainment (NYSE: CEC) and Del Taco Restaurants (NASDAQ:TACO) are both small-cap cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CEC Entertainment and Del Taco Restaurants, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CEC Entertainment 0 0 0 0 N/A
Del Taco Restaurants 0 1 4 0 2.80

Del Taco Restaurants has a consensus price target of $16.40, suggesting a potential upside of 35.65%.

Risk and Volatility

CEC Entertainment has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Del Taco Restaurants has a beta of -0.29, suggesting that its share price is 129% less volatile than the S&P 500.

Valuation & Earnings

This table compares CEC Entertainment and Del Taco Restaurants’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CEC Entertainment N/A N/A N/A $2.73 N/A
Del Taco Restaurants $452.08 million 1.03 $20.91 million $0.56 21.59

Del Taco Restaurants has higher revenue and earnings than CEC Entertainment. CEC Entertainment is trading at a lower price-to-earnings ratio than Del Taco Restaurants, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CEC Entertainment and Del Taco Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CEC Entertainment N/A N/A N/A
Del Taco Restaurants 4.78% 5.89% 3.08%

Institutional & Insider Ownership

81.4% of Del Taco Restaurants shares are held by institutional investors. 14.6% of Del Taco Restaurants shares are held 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.

Summary

Del Taco Restaurants beats CEC Entertainment on 7 of the 9 factors compared between the two stocks.

CEC Entertainment Company Profile

CEC Entertainment, Inc. is engaged in the family dining and entertainment center business. The Company develops, operates and franchises family dining and entertainment centers under the name Chuck E. Cheese’s. Chuck E. Cheese’s stores feature musical and comic entertainment by robotic and animated characters, arcade-style and skill-oriented games, video games, rides and other activities. All of its stores offer dining selections consisting of a range of beverages, pizzas, sandwiches, appetizers, a salad bar and desserts. As of January 1, 2012, the Company and its franchisees operated a total of 556 Chuck E. Cheese’s stores. As of January 1, 2012, it operated 507 Company-owned Chuck E. Cheese’s stores located in 44 states and Canada and its franchisees operated a total of 49 stores located in 15 states, Puerto Rico, Guam, Guatemala, Chile, Saudi Arabia and the United Arab Emirates. In February 2014, Apollo Global Management, LLC completed the acquisition of CEC Entertainment Inc.

Del Taco Restaurants Company Profile

Del Taco Restaurants, Inc. is an operator and franchisor of restaurants featuring made-to-order cuisine, including both Mexican inspired and American classic dishes. As of January 3, 2017, the Company operated 551 Del Taco restaurants. The Company’s menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries and milkshakes. The Company’s menu features items, such as its Platos plated meals, Epic Burritos, Handcrafted Ensaladas and Fresca Bowls, as well as items on its Buck & Under Menu. As of January 3, 2017, the Company had 310 Company-operated and 241 franchise-operated restaurants. The Platos menu offering consists of individually plated meals complete with an entree, two sides, and chips and salsa. The Company’s menu also includes quesadillas, bowls and handcrafted ensaladas, as well as burgers and fries.

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