Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) and Serve Robotics (NASDAQ:SERV – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Analyst Ratings
This is a breakdown of current recommendations for Dave & Buster’s Entertainment and Serve Robotics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave & Buster’s Entertainment | 1 | 6 | 2 | 0 | 2.11 |
| Serve Robotics | 1 | 1 | 5 | 1 | 2.75 |
Dave & Buster’s Entertainment presently has a consensus target price of $19.33, indicating a potential upside of 121.71%. Serve Robotics has a consensus target price of $14.77, indicating a potential upside of 198.32%. Given Serve Robotics’ stronger consensus rating and higher probable upside, analysts clearly believe Serve Robotics is more favorable than Dave & Buster’s Entertainment.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dave & Buster’s Entertainment | $2.10 billion | 0.14 | -$48.70 million | ($1.89) | -4.61 |
| Serve Robotics | $2.65 million | 161.97 | -$101.36 million | ($2.45) | -2.02 |
Dave & Buster’s Entertainment has higher revenue and earnings than Serve Robotics. Dave & Buster’s Entertainment is trading at a lower price-to-earnings ratio than Serve Robotics, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
91.4% of Dave & Buster’s Entertainment shares are held by institutional investors. 1.7% of Dave & Buster’s Entertainment shares are held by company insiders. Comparatively, 5.0% of Serve Robotics shares are held by company 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
Dave & Buster’s Entertainment has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Serve Robotics has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Profitability
This table compares Dave & Buster’s Entertainment and Serve Robotics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dave & Buster’s Entertainment | -3.09% | -24.19% | -0.72% |
| Serve Robotics | -2,315.80% | -55.34% | -52.06% |
Summary
Dave & Buster’s Entertainment beats Serve Robotics on 8 of the 15 factors compared between the two stocks.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
About Serve Robotics
Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.
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