Analyzing Country Syl Ckng Restaurant Chain (NYSE:CCSC) & Yum! Brands (YUM)

Country Syl Ckng Restaurant Chain (NYSE: CCSC) and Yum! Brands (NYSE:YUM) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Country Syl Ckng Restaurant Chain and Yum! Brands, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Country Syl Ckng Restaurant Chain 0 0 0 0 N/A
Yum! Brands 0 11 11 0 2.50

Yum! Brands has a consensus price target of $80.40, suggesting a potential downside of 3.49%. Given Yum! Brands’ higher possible upside, analysts plainly believe Yum! Brands is more favorable than Country Syl Ckng Restaurant Chain.

Volatility & Risk

Country Syl Ckng Restaurant Chain has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Country Syl Ckng Restaurant Chain and Yum! Brands’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Country Syl Ckng Restaurant Chain N/A N/A N/A $0.16 32.31
Yum! Brands $6.37 billion 4.41 $1.62 billion $1.71 48.72

Yum! Brands has higher revenue and earnings than Country Syl Ckng Restaurant Chain. Country Syl Ckng Restaurant Chain is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Country Syl Ckng Restaurant Chain and Yum! Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Country Syl Ckng Restaurant Chain 3.68% 5.63% 4.72%
Yum! Brands 18.51% -17.19% 18.79%

Dividends

Yum! Brands pays an annual dividend of $1.20 per share and has a dividend yield of 1.4%. Country Syl Ckng Restaurant Chain does not pay a dividend. Yum! Brands pays out 70.2% of its earnings in the form of a dividend. Yum! Brands has increased its dividend for 8 consecutive years.

Insider & Institutional Ownership

73.9% of Yum! Brands shares are held by institutional investors. 0.7% of Yum! Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Yum! Brands beats Country Syl Ckng Restaurant Chain on 11 of the 13 factors compared between the two stocks.

About Country Syl Ckng Restaurant Chain

Country Style Cooking Restaurant Chain Co., Ltd. (CSC Cayman) is a quick service restaurant chain in China. The Company is engaged in serving Sichuan-style fast food over the counter in the People’s Republic of China. The Company’s restaurant chain has approximately 337 restaurants, including around 177 restaurants in Chongqing municipality and around 103 restaurants in Sichuan province. CSC Cayman’s staples include entrees, such as spicy sauteed pork, Taiwanese-style braised pork over rice, honey-roasted spicy chicken wings, mushroom chicken, shredded pepper steak, shredded quick-fried ginger duck and kung pao chicken, along with a range of appetizers, desserts and beverages. Each entree on its menu is prepared with pre-mixed sauce packages delivered from the Company’s central facility in Chongqing. Approximately 260 of the Company’s restaurants are operated under its CSC brand and around 74 of the restaurants were operated under its Mr. Rice brand.

About Yum! Brands

YUM! Brands, Inc. is engaged in restaurant business. As of December 31, 2016, the Company operated or franchised over 43,500 restaurants in more than 135 countries and territories operating under the KFC, Pizza Hut or Taco Bell (collectively the Concepts) brands. The Company operates through three segments: The KFC Division, which includes the operations of the KFC concept around the world; The Pizza Hut Division, which includes the operations of the Pizza Hut concept around the world, and The Taco Bell Division, which includes the operations of the Taco Bell concept around the world. KFC restaurants across the world offer fried and non-fried chicken products, such as sandwiches, chicken strips, chicken-on-the-bone and other chicken products. Pizza Hut is a restaurant chain specialized in the sale of ready-to-eat pizza products. Taco Bell specializes in Mexican-style food products, including various types of tacos, burritos, quesadillas, salads, nachos and other related items.

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