Contrasting Wingstop (NASDAQ:WING) and California Beach Restaurants (OTCMKTS:CBHR)

Wingstop (NASDAQ:WING) and California Beach Restaurants (OTCMKTS:CBHR) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Wingstop and California Beach Restaurants, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wingstop	0	7	14	0	2.67
California Beach Restaurants	0	0	0	0	0.00

Wingstop currently has a consensus target price of $357.67, indicating a potential upside of 59.47%. Given Wingstop’s stronger consensus rating and higher probable upside, equities analysts clearly believe Wingstop is more favorable than California Beach Restaurants.

Risk and Volatility

Wingstop has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, California Beach Restaurants has a beta of 7.59, suggesting that its share price is 659% more volatile than the S&P 500.

Profitability

This table compares Wingstop and California Beach Restaurants’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wingstop	17.37%	-21.59%	20.86%
California Beach Restaurants	N/A	N/A	N/A

Valuation & Earnings

This table compares Wingstop and California Beach Restaurants”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wingstop	$625.81 million	10.27	$70.18 million	$3.71	60.46
California Beach Restaurants	N/A	N/A	N/A	N/A	N/A

Wingstop has higher revenue and earnings than California Beach Restaurants.

Summary

Wingstop beats California Beach Restaurants on 6 of the 8 factors compared between the two stocks.

About Wingstop

Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand. Its restaurants offer classic wings, boneless wings, tenders, and hand-sauced-and-tossed in various flavors, as well as chicken sandwiches with fries and hand-cut carrots and celery that are cooked-to-order. The company was founded in 1994 and is headquartered in Addison, Texas.

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.