Bojangles’ (BOJA) vs. Del Frisco’s Restaurant Group (DFRG) Head to Head Review

Bojangles’ (NASDAQ: BOJA) and Del Frisco’s Restaurant Group (NASDAQ:DFRG) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

91.3% of Bojangles’ shares are held by institutional investors. Comparatively, 99.2% of Del Frisco’s Restaurant Group shares are held by institutional investors. 55.3% of Bojangles’ shares are held by insiders. Comparatively, 2.7% of Del Frisco’s Restaurant Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Bojangles’ and Del Frisco’s Restaurant Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bojangles’ $538.50 million 0.91 $79.81 million $0.95 13.95
Del Frisco’s Restaurant Group $356.76 million 0.87 $41.74 million $0.56 26.25

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

Profitability

This table compares Bojangles’ and Del Frisco’s Restaurant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bojangles’ 6.70% 17.05% 6.47%
Del Frisco’s Restaurant Group 3.73% 7.39% 4.77%

Analyst Ratings

This is a summary of current recommendations and price targets for Bojangles’ and Del Frisco’s Restaurant Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bojangles’ 0 6 2 0 2.25
Del Frisco’s Restaurant Group 0 3 2 0 2.40

Bojangles’ currently has a consensus target price of $18.43, indicating a potential upside of 39.08%. Del Frisco’s Restaurant Group has a consensus target price of $18.10, indicating a potential upside of 23.13%. Given Bojangles”s higher possible upside, analysts clearly believe Bojangles’ is more favorable than Del Frisco’s Restaurant Group.

Volatility & Risk

Bojangles’ has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Del Frisco’s Restaurant Group has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Summary

Bojangles’ beats Del Frisco’s Restaurant Group on 10 of the 13 factors compared between the two stocks.

About Bojangles’

Bojangles’, Inc. is a restaurant operator and franchisor. The Company offers food made from its Southern recipes. The Company’s menu includes its made-from-scratch, buttermilk biscuits baked fresh every 20 minutes; its fresh, never-frozen bone-in fried chicken; its fixin’s; its Bo-Smart menu featuring items, such as salads, grilled chicken sandwiches, roasted chicken bites and fat-free green beans; its freshly baked and delicious sweets menu, and its Legendary Iced Tea. The Company’s food is offered a la carte and in combos. The Company’s chicken, fixin’s, biscuits and Legendary Iced Tea may also be ordered in boxes or family meals, and larger combinations may be offered as tailgate specials or may be packaged in its Big Bo Box. The Company offers Southern style mac ‘n cheese made from two cheeses; fat-free green beans; cole slaw, and mashed potatoes with gravy. Its menu also features salads, sandwiches and its whole meat Roasted Chicken Bites.

About Del Frisco’s Restaurant Group

Del Frisco’s Restaurant Group, Inc. develops, owns and operates three contemporary, complementary restaurants: Del Frisco’s Double Eagle Steak House (Del Frisco’s), Sullivan’s Steakhouse (Sullivan’s) and Del Frisco’s Grille (the Grille). As of December 27, 2016, the Company operated 53 restaurants in 24 states and the District of Columbia in the United States. The Company’s segments include Del Frisco’s, Sullivan’s and the Grille. Del Frisco’s is a steakhouse concept in the United States. The Del Frisco’s brand’s menu includes the United States Department of Agriculture (USDA) Prime grade, wet-aged steaks hand-cut at the time of order and a range of other offerings, including prime lamb, fresh seafood, and signature side dishes and desserts. Each restaurant has a sommelier to guide diners through a wine list. As of December 27, 2016, the Company operated 12 Del Frisco’s steakhouses in nine states and the District of Columbia. Sullivan’s is a complementary concept to Del Frisco’s.

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