Del Taco Restaurants (NASDAQ:TACO) and Star Buffet (OTCMKTS:STRZ) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Earnings and Valuation
This table compares Del Taco Restaurants and Star Buffet’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Del Taco Restaurants||$505.49 million||0.81||$18.96 million||$0.56||19.70|
|Star Buffet||$26.04 million||N/A||$120,000.00||N/A||N/A|
This table compares Del Taco Restaurants and Star Buffet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Del Taco Restaurants||3.75%||5.12%||2.87%|
Volatility and Risk
Del Taco Restaurants has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Star Buffet has a beta of 3.28, suggesting that its stock price is 228% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Del Taco Restaurants and Star Buffet, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Del Taco Restaurants||0||2||4||0||2.67|
Del Taco Restaurants currently has a consensus target price of $14.50, indicating a potential upside of 31.46%. Given Del Taco Restaurants’ higher possible upside, equities analysts clearly believe Del Taco Restaurants is more favorable than Star Buffet.
Institutional and Insider Ownership
82.2% of Del Taco Restaurants shares are held by institutional investors. 16.4% of Del Taco Restaurants shares are held by insiders. Comparatively, 53.6% of Star Buffet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Del Taco Restaurants beats Star Buffet on 8 of the 10 factors compared between the two stocks.
About Del Taco Restaurants
Del Taco Restaurants, Inc. develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants in the United States. The company's restaurants offer Mexican inspired and American classic dishes. As of December 10, 2018, it operated approximately 560 restaurants across 14 states. The company was founded in 1964 and is headquartered in Lake Forest, California.
About Star Buffet
Star Buffet, Inc. owns and operates full service restaurants in the United States. As of July 19, 2018, it operated 27 restaurants in 10 states. The company operates its restaurants under the 4B's, JB's, Barnhill's Salads Buffet Desserts, Casa Bonita, and BuddyFreddys names. Star Buffet, Inc. was founded in 1997 and is based in Scottsdale, Arizona.
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