Head to Head Comparison: CEC Entertainment (CEC) & Yum! Brands (YUM)
CEC Entertainment (NYSE: CEC) and Yum! Brands (NYSE:YUM) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
73.2% of Yum! Brands shares are held by institutional investors. 0.7% of Yum! Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of recent ratings and recommmendations for CEC Entertainment and Yum! Brands, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yum! Brands has a consensus price target of $81.38, indicating a potential upside of 4.64%.
This table compares CEC Entertainment and Yum! Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Yum! Brands pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. CEC Entertainment does not pay a dividend. Yum! Brands pays out 31.7% of its earnings in the form of a dividend.
Volatility and Risk
CEC Entertainment has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Earnings and Valuation
This table compares CEC Entertainment and Yum! Brands’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Yum! Brands||$5.88 billion||4.46||$1.34 billion||$3.79||20.52|
Yum! Brands has higher revenue and earnings than CEC Entertainment. CEC Entertainment is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
Yum! Brands beats CEC Entertainment on 9 of the 11 factors compared between the two stocks.
About CEC Entertainment
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.
About Yum! Brands
YUM! Brands, Inc. is engaged in restaurant business. As of December 31, 2016, the Company operated or franchised over 43,500 restaurants in more than 135 countries and territories operating under the KFC, Pizza Hut or Taco Bell (collectively the Concepts) brands. The Company operates through three segments: The KFC Division, which includes the operations of the KFC concept around the world; The Pizza Hut Division, which includes the operations of the Pizza Hut concept around the world, and The Taco Bell Division, which includes the operations of the Taco Bell concept around the world. KFC restaurants across the world offer fried and non-fried chicken products, such as sandwiches, chicken strips, chicken-on-the-bone and other chicken products. Pizza Hut is a restaurant chain specialized in the sale of ready-to-eat pizza products. Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, quesadillas, salads, nachos and other related items.
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