Del Taco Restaurants (NASDAQ:TACO) and Bojangles (NASDAQ:BOJA) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Insider & Institutional Ownership
82.1% of Del Taco Restaurants shares are held by institutional investors. Comparatively, 91.0% of Bojangles shares are held by institutional investors. 14.6% of Del Taco Restaurants shares are held by company insiders. Comparatively, 52.9% of Bojangles shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Del Taco Restaurants has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500. Comparatively, Bojangles has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Valuation & Earnings
This table compares Del Taco Restaurants and Bojangles’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Del Taco Restaurants||$471.46 million||0.81||$49.87 million||$0.52||19.42|
|Bojangles||$547.44 million||1.10||$72.00 million||$0.83||19.37|
Bojangles has higher revenue and earnings than Del Taco Restaurants. Bojangles 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.
This table compares Del Taco Restaurants and Bojangles’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Del Taco Restaurants||9.81%||4.93%||2.77%|
This is a breakdown of current ratings and target prices for Del Taco Restaurants and Bojangles, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Del Taco Restaurants||0||2||4||0||2.67|
Del Taco Restaurants currently has a consensus target price of $15.17, suggesting a potential upside of 50.17%. Bojangles has a consensus target price of $14.67, suggesting a potential downside of 8.79%. Given Del Taco Restaurants’ stronger consensus rating and higher probable upside, analysts plainly believe Del Taco Restaurants is more favorable than Bojangles.
Bojangles beats Del Taco Restaurants on 9 of the 14 factors compared between the two stocks.
Del Taco Restaurants Company Profile
Del Taco Restaurants, Inc. develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants in the United States. The company's restaurants offer Mexican inspired and American classic dishes. As of December 10, 2018, it operated approximately 560 restaurants across 14 states. The company was founded in 1964 and is headquartered in Lake Forest, California.
Bojangles Company Profile
Bojangles', Inc. develops, operates, and franchises limited service restaurants in the United States. Its restaurants offer made-from-scratch biscuit breakfast sandwiches, hand-breaded bone-in chicken, fixin's, and iced tea. As of July 1, 2018, the company operated 766 system-wide restaurants, including 325 company-operated and 441 franchised restaurants primarily located in the Southeastern United States. Bojangles', Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.
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