Head-To-Head Survey: Cracker Barrel Old Country Store (CBRL) versus Star Buffet (STRZ)

Cracker Barrel Old Country Store (NASDAQ:CBRL) and Star Buffet (OTCMKTS:STRZ) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Cracker Barrel Old Country Store has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, Star Buffet has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Cracker Barrel Old Country Store and Star Buffet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cracker Barrel Old Country Store 8.14% 35.18% 13.81%
Star Buffet -0.78% N/A -2.86%

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $5.00 per share and has a dividend yield of 2.9%. Star Buffet does not pay a dividend. Cracker Barrel Old Country Store pays out 56.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Cracker Barrel Old Country Store and Star Buffet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cracker Barrel Old Country Store $3.03 billion 1.35 $247.62 million $8.87 19.26
Star Buffet $26.52 million 0.07 $120,000.00 N/A N/A

Cracker Barrel Old Country Store has higher revenue and earnings than Star Buffet.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Cracker Barrel Old Country Store and Star Buffet, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cracker Barrel Old Country Store 2 4 1 0 1.86
Star Buffet 0 0 0 0 N/A

Cracker Barrel Old Country Store currently has a consensus price target of $162.82, indicating a potential downside of 4.70%. Given Cracker Barrel Old Country Store’s higher probable upside, research analysts clearly believe Cracker Barrel Old Country Store is more favorable than Star Buffet.

Insider & Institutional Ownership

87.8% of Cracker Barrel Old Country Store shares are held by institutional investors. 0.9% of Cracker Barrel Old Country Store shares are held by company insiders. Comparatively, 53.6% of Star Buffet shares are held by company 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.

Summary

Cracker Barrel Old Country Store beats Star Buffet on 10 of the 13 factors compared between the two stocks.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. Its Cracker Barrel stores consist of a restaurant with a gift shop. The company's restaurants serve breakfast, lunch, and dinner. Its gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts, toys, apparel, music CDs, cookware, and various other gift items, as well as pies, cornbread mixes, coffee, syrups, pancake mixes, candies, preserves, and other food items. As of September 20, 2018, the company operated 655 Cracker Barrel Old Country stores in 45 states. Cracker Barrel Old Country Store, Inc. was founded in 1969 and is headquartered in Lebanon, Tennessee.

About Star Buffet

Star Buffet, Inc. owns and operates full service restaurants in the United States. As of July 19, 2018, it operated 27 restaurants in 10 states. The company operates its restaurants under the 4B's, JB's, Barnhill's Salads Buffet Desserts, Casa Bonita, and BuddyFreddys names. Star Buffet, Inc. was founded in 1997 and is based in Scottsdale, Arizona.

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