Brinker International (NYSE: EAT) and Chanticleer (NASDAQ:BURG) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Dividends

Brinker International pays an annual dividend of $1.52 per share and has a dividend yield of 4.0%. Chanticleer does not pay a dividend. Brinker International pays out 54.9% of its earnings in the form of a dividend. Chanticleer has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brinker International and Chanticleer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brinker International 1 11 3 0 2.13
Chanticleer 0 0 0 0 N/A

Brinker International presently has a consensus price target of $41.00, suggesting a potential upside of 8.78%. Given Brinker International’s higher probable upside, equities research analysts clearly believe Brinker International is more favorable than Chanticleer.

Risk & Volatility

Brinker International has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Chanticleer has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.

Institutional and Insider Ownership

2.3% of Chanticleer shares are held by institutional investors. 1.9% of Brinker International shares are held by insiders. Comparatively, 2.5% of Chanticleer shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Brinker International and Chanticleer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brinker International 4.39% -30.36% 11.01%
Chanticleer -15.66% -48.28% -19.80%

Valuation and Earnings

This table compares Brinker International and Chanticleer’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brinker International $3.15 billion 0.55 $150.82 million $2.77 13.61
Chanticleer $41.70 million 0.17 -$9.07 million ($2.88) -0.83

Brinker International has higher revenue and earnings than Chanticleer. Chanticleer is trading at a lower price-to-earnings ratio than Brinker International, indicating that it is currently the more affordable of the two stocks.

Summary

Brinker International beats Chanticleer on 10 of the 15 factors compared between the two stocks.

Brinker International Company Profile

Brinker International, Inc. is engaged in the ownership, operation, development, and franchising of the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) restaurant brands. The Company’s Chili’s operates Bar & Grill category of casual dining. Chili’s menu features authentic Fresh Mex and Fresh Tex cuisine, including signature items, such as Baby Back Ribs smoked in-house, Hand-Crafted Burgers served with house-made garlic dill pickles, Mix and Match Fajitas, Tableside Guacamole and house-made Chips and Salsa. Maggiano’s is a full-service, casual dining Italian restaurant brand. Its Maggiano’s restaurants feature individual and family-style menus, and its restaurants also has banquet facilities designed to host party business or social events. The Company owns, operates or franchises restaurants, which include approximately 1,650 restaurants in the United States, over 30 countries and approximately two territories outside of the United States.

Chanticleer Company Profile

Chanticleer Holdings, Inc. is engaged in the business of owning, operating and franchising fast casual dining concepts domestically and internationally. The Company’s brands include Hooters, American Burger Company (ABC), BGR: the Burger Joint (BGR), BT’s Burger Joint (BT), Little Big Burger (LBB) and Just Fresh. Hooters restaurants are casual beach-themed establishments featuring music, sports on large flat screens, and a menu that includes seafood, burgers, salads and Hooters original chicken wings. ABC is a fast casual dining chain located in North Carolina, South Carolina and New York. BGR consists of approximately 10 Company-owned locations in the United States and over 13 franchisee-operated locations in the United States and the Middle East. LBB consists of approximately eight locations in Oregon. Just Fresh consists of approximately seven Company owned locations in Charlotte, North Carolina.

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