Country Syl Ckng Restaurant Chain (CCSC) versus Sonic (SONC) Head to Head Comparison

Country Syl Ckng Restaurant Chain (NYSE: CCSC) and Sonic (NASDAQ:SONC) are both small-cap quick service restaurants companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Volatility & Risk

Country Syl Ckng Restaurant Chain has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Sonic has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Dividends

Sonic pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Country Syl Ckng Restaurant Chain does not pay a dividend. Sonic pays out 43.8% of its earnings in the form of a dividend.

Profitability

This table compares Country Syl Ckng Restaurant Chain and Sonic’s 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%
Sonic 13.68% -28.95% 9.91%

Valuation & Earnings

This table compares Country Syl Ckng Restaurant Chain and Sonic’s gross revenue, earnings per share (EPS) 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
Sonic $477.27 million 2.17 $63.66 million $1.46 18.40

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Country Syl Ckng Restaurant Chain and Sonic, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Country Syl Ckng Restaurant Chain 0 0 0 0 N/A
Sonic 1 6 5 0 2.33

Sonic has a consensus target price of $29.33, suggesting a potential upside of 9.17%. Given Sonic’s higher possible upside, analysts clearly believe Sonic is more favorable than Country Syl Ckng Restaurant Chain.

Summary

Sonic beats Country Syl Ckng Restaurant Chain on 8 of the 11 factors compared between the two stocks.

Country Syl Ckng Restaurant Chain Company Profile

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.

Sonic Company Profile

Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 Company drive-thrus and 3,212 franchise drive-thrus. As of August 31, 2016, its restaurant design and construction consisted of a kitchen housed in a one-story building, which was approximately 1,500 square feet, flanked by canopy-covered rows of 16 to 24 parking spaces, with each space having its own payment terminal, intercom speaker system and menu board. At a Sonic Drive-In, a customer drives into one of the parking spaces, orders through the intercom speaker system and has the food delivered by a carhop and Sonic Drive-Ins also include a drive-thru lane and patio seating to provide customers with alternative dining options. Its food items include specialty drinks, such as cherry limeades and slushes, ice cream desserts and chicken sandwiches and hamburgers.

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