Noodles & Co (NDLS) & CEC Entertainment (CEC) Head-To-Head Contrast

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

Valuation & Earnings

This table compares Noodles & Co and CEC Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noodles & Co $487.47 million 0.48 -$71.67 million ($3.04) -1.94
CEC Entertainment N/A N/A N/A $2.73 N/A

CEC Entertainment has lower revenue, but higher earnings than Noodles & Co. Noodles & Co is trading at a lower price-to-earnings ratio than CEC Entertainment, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Noodles & Co and CEC Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noodles & Co -17.41% -6.83% -1.19%
CEC Entertainment N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Noodles & Co and CEC Entertainment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noodles & Co 1 5 1 0 2.00
CEC Entertainment 0 0 0 0 N/A

Noodles & Co currently has a consensus price target of $5.00, suggesting a potential downside of 15.25%.

Risk and Volatility

Noodles & Co has a beta of -0.26, suggesting that its share price is 126% less volatile than the S&P 500. Comparatively, CEC Entertainment has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

66.7% of Noodles & Co shares are held by institutional investors. 52.7% of Noodles & Co shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

CEC Entertainment beats Noodles & Co on 5 of the 9 factors compared between the two stocks.

Noodles & Co Company Profile

Noodles & Company develops and operates fast casual restaurants. The Company’s menu includes a range of cooked-to-order dishes, including noodles and pasta, soups, salads, sandwiches and appetizers. The Company has approximately 490 restaurants, including 420 Company-owned and 70 franchised locations, across 40 states, the District of Columbia and one Canadian province. The Company offers over 30 globally inspired Asian, Mediterranean and American dishes together on a single menu. The Company offers approximately 10 fresh vegetables and six proteins, including marinated steak, naturally raised pork, chicken, meatballs, shrimp and organic tofu. The Company offers Kids Meals, which includes sides, such as broccoli, carrots, fruit, applesauce and a portion of its housemade rice crispy treat. The Company’s restaurants’ locations include Arizona, California, Colorado, Delaware, New York, North Dakota, Ohio, Texas, Utah, Virginia, Washington and Wisconsin.

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.

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