J Alexanders (NASDAQ: TAST) and Carrols Restaurant Group (NASDAQ:TAST) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
This table compares J Alexanders and Carrols Restaurant Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Carrols Restaurant Group||1.00%||8.53%||2.48%|
Institutional & Insider Ownership
72.1% of J Alexanders shares are owned by institutional investors. Comparatively, 83.0% of Carrols Restaurant Group shares are owned by institutional investors. 15.0% of J Alexanders shares are owned by insiders. Comparatively, 4.6% of Carrols Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares J Alexanders and Carrols Restaurant Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|J Alexanders||$233.26 million||0.68||$7.33 million||$0.53||20.38|
|Carrols Restaurant Group||$1.09 billion||0.54||$7.15 million||$0.20||80.50|
J Alexanders has higher earnings, but lower revenue than Carrols Restaurant Group. J Alexanders is trading at a lower price-to-earnings ratio than Carrols Restaurant Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for J Alexanders and Carrols Restaurant Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Carrols Restaurant Group||0||0||5||0||3.00|
Carrols Restaurant Group has a consensus price target of $17.83, indicating a potential upside of 10.77%. Given Carrols Restaurant Group’s higher probable upside, analysts plainly believe Carrols Restaurant Group is more favorable than J Alexanders.
Risk & Volatility
J Alexanders has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500. Comparatively, Carrols Restaurant Group has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
Carrols Restaurant Group beats J Alexanders on 7 of the 13 factors compared between the two stocks.
About J Alexanders
J. Alexander's Holdings, Inc., through its subsidiaries, owns and operates full service restaurants in the United States. It operates four complementary upscale dining restaurant concepts, including J. Alexander's, Redlands Grill, Lyndhurst Grill, and Stoney River Steakhouse and Grill (Stoney River). The company's restaurants offer American menu. As of March 14, 2018, it operated 44 restaurants in 15 states. J. Alexander's Holdings, Inc. was founded in 1970 and is headquartered in Nashville, Tennessee.
About Carrols Restaurant Group
Carrols Restaurant Group, Inc., through its subsidiaries, operates franchisee restaurants of Burger King. As of December 31, 2017, it owned and operated 807 Burger King restaurants located in 17 states of the United States. The company was founded in 1960 and is headquartered in Syracuse, New York.
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