California Beach Restaurants (OTCMKTS:CBHR) and Dave & Buster’s Entertainment (NASDAQ:PLAY) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
This table compares California Beach Restaurants and Dave & Buster’s Entertainment’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|
|Dave & Buster’s Entertainment||-18.78%||-60.06%||-4.95%|
Earnings & Valuation
This table compares California Beach Restaurants and Dave & Buster’s Entertainment’s gross revenue, earnings per share 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|
|Dave & Buster’s Entertainment||$1.35 billion||1.61||$100.26 million||$3.02||15.20|
Dave & Buster’s Entertainment has higher revenue and earnings than California Beach Restaurants.
Risk and Volatility
California Beach Restaurants has a beta of -0.16, meaning that its stock price is 116% less volatile than the S&P 500. Comparatively, Dave & Buster’s Entertainment has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500.
This is a summary of current ratings and price targets for California Beach Restaurants and Dave & Buster’s Entertainment, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|California Beach Restaurants||0||0||0||0||N/A|
|Dave & Buster’s Entertainment||0||4||6||1||2.73|
Dave & Buster’s Entertainment has a consensus price target of $43.09, indicating a potential downside of 6.10%. Given Dave & Buster’s Entertainment’s higher probable upside, analysts plainly believe Dave & Buster’s Entertainment is more favorable than California Beach Restaurants.
Institutional & Insider Ownership
97.9% of Dave & Buster’s Entertainment shares are owned by institutional investors. 49.5% of California Beach Restaurants shares are owned by company insiders. Comparatively, 3.7% of Dave & Buster’s Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dave & Buster’s Entertainment beats California Beach Restaurants on 6 of the 10 factors compared between the two stocks.
About California Beach Restaurants
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 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.