Chuy’s Holdings (NASDAQ: CHUY) and Fiesta Restaurant Group (NASDAQ:FRGI) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Risk and Volatility

Chuy’s Holdings has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Fiesta Restaurant Group has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Valuation & Earnings

This table compares Chuy’s Holdings and Fiesta Restaurant Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chuy’s Holdings $346.03 million 0.98 $41.16 million $0.99 20.25
Fiesta Restaurant Group $701.79 million 0.67 $69.79 million ($0.72) -24.38

Fiesta Restaurant Group has higher revenue and earnings than Chuy’s Holdings. Fiesta Restaurant Group is trading at a lower price-to-earnings ratio than Chuy’s Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Chuy’s Holdings and Fiesta Restaurant Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chuy’s Holdings 0 7 2 0 2.22
Fiesta Restaurant Group 0 6 1 0 2.14

Chuy’s Holdings currently has a consensus price target of $27.88, indicating a potential upside of 39.03%. Fiesta Restaurant Group has a consensus price target of $24.00, indicating a potential upside of 36.75%. Given Chuy’s Holdings’ stronger consensus rating and higher possible upside, equities analysts clearly believe Chuy’s Holdings is more favorable than Fiesta Restaurant Group.

Insider & Institutional Ownership

99.9% of Chuy’s Holdings shares are owned by institutional investors. Comparatively, 94.1% of Fiesta Restaurant Group shares are owned by institutional investors. 3.3% of Chuy’s Holdings shares are owned by company insiders. Comparatively, 2.2% of Fiesta Restaurant Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Chuy’s Holdings and Fiesta Restaurant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chuy’s Holdings 4.86% 11.16% 7.30%
Fiesta Restaurant Group -2.75% 11.77% 6.95%

Summary

Chuy’s Holdings beats Fiesta Restaurant Group on 10 of the 14 factors compared between the two stocks.

Chuy’s Holdings Company Profile

Chuy’s Holdings, Inc. operates Chuy’s, a restaurant concept offering a distinct menu of authentic, freshly prepared Mexican and Tex-Mex inspired food. As of December 25, 2016, the Company operated 80 Chuy’s restaurants across 16 states. The Company offers the same menu during lunch and dinner, which includes enchiladas, fajitas, tacos, burritos, combination platters and daily specials, complemented by a range of appetizers, soups and salads. Each of the Company’s restaurants offers a range of homemade sauces, including the signature Hatch green chile and creamy jalapeno sauces. The Company also offers a full-service bar in all of its restaurants providing its customers a range of beverage offerings, featuring a selection of specialty cocktails including its signature on-the-rocks margaritas made with fresh, hand-squeezed lime juice, and the Texas Martini, a made-to-order, hand-shaken cocktail served with jalapeno-stuffed olives.

Fiesta Restaurant Group Company Profile

Fiesta Restaurant Group, Inc. owns, operates and franchises two fast-casual restaurant brands, Pollo Tropical and Taco Cabana through its subsidiaries Pollo Operations, Inc., and its subsidiaries, and Pollo Franchise, Inc., (collectively Pollo Tropical) and Taco Cabana, Inc. and its subsidiaries (collectively Taco Cabana). The Company operates through the Pollo Tropical and Taco Cabana segments. The Company’s Pollo Tropical restaurants offer Caribbean menu items, featuring its bone-in chicken marinated in blend of tropical fruit juices and grilled over an open flame. The Company also offers catering for parties and corporate events. The Company’s Taco Cabana restaurants serves Mexican food, including flame-grilled steak and chicken fajitas served on sizzling iron skillets, quesadillas, hand-rolled flautas, enchiladas, burritos, tacos, fresh-made flour tortillas, customizable salads served in its Cabana Bowl, and its breakfast tacos.

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