Reviewing California Beach Restaurants (OTCMKTS:CBHR) & First Watch Restaurant Group (NASDAQ:FWRG)

California Beach Restaurants (OTCMKTS:CBHR – Get Rating) and First Watch Restaurant Group (NASDAQ:FWRG – Get Rating) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares California Beach Restaurants and First Watch Restaurant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Beach Restaurants	N/A	N/A	N/A
First Watch Restaurant Group	0.95%	1.33%	0.64%

Institutional & Insider Ownership

96.4% of First Watch Restaurant Group shares are held by institutional investors. 49.5% of California Beach Restaurants shares are held by insiders. Comparatively, 4.1% of First Watch Restaurant Group 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.

Volatility & Risk

California Beach Restaurants has a beta of 7.59, suggesting that its stock price is 659% more volatile than the S&P 500. Comparatively, First Watch Restaurant Group has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Valuation & Earnings

This table compares California Beach Restaurants and First Watch Restaurant Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Beach Restaurants	N/A	N/A	N/A	N/A	N/A
First Watch Restaurant Group	$730.16 million	1.25	$6.91 million	$0.12	128.26

First Watch Restaurant Group has higher revenue and earnings than California Beach Restaurants.

Analyst Recommendations

This is a breakdown of recent ratings for California Beach Restaurants and First Watch Restaurant Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Beach Restaurants	0	0	0	0	N/A
First Watch Restaurant Group	0	3	5	0	2.63

First Watch Restaurant Group has a consensus target price of $20.11, indicating a potential upside of 30.68%. Given First Watch Restaurant Group’s higher possible upside, analysts plainly believe First Watch Restaurant Group is more favorable than California Beach Restaurants.

Summary

First Watch Restaurant Group beats California Beach Restaurants on 7 of the 9 factors compared between the two stocks.

About California Beach Restaurants

(Get Rating)

California Beach Restaurants, Inc., through its wholly owned subsidiary, Sea View Restaurants, Inc., engages in the ownership and operation of Gladstone's 4 Fish restaurant in Pacific Palisades, California.

About First Watch Restaurant Group

(Get Rating)

First Watch Restaurant Group, Inc. operates and franchises restaurants under the First Watch trade name. As of September 7, 2022, it operated 445 restaurants in 28 states in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is headquartered in Bradenton, Florida.