Carrols Restaurant Group (TAST) and Habit Restaurants (HABT) Head to Head Review

Carrols Restaurant Group (NASDAQ:TAST) and Habit Restaurants (NASDAQ:HABT) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings for Carrols Restaurant Group and Habit Restaurants, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carrols Restaurant Group 0 0 3 0 3.00
Habit Restaurants 0 5 2 0 2.29

Carrols Restaurant Group currently has a consensus price target of $19.00, indicating a potential upside of 32.87%. Habit Restaurants has a consensus price target of $14.86, indicating a potential downside of 0.29%. Given Carrols Restaurant Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Carrols Restaurant Group is more favorable than Habit Restaurants.

Risk & Volatility

Carrols Restaurant Group has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Habit Restaurants has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares Carrols Restaurant Group and Habit Restaurants’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carrols Restaurant Group $1.09 billion 0.48 $7.15 million $0.20 71.50
Habit Restaurants $331.70 million 1.17 -$2.80 million $0.16 93.13

Carrols Restaurant Group has higher revenue and earnings than Habit Restaurants. Carrols Restaurant Group is trading at a lower price-to-earnings ratio than Habit Restaurants, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Carrols Restaurant Group and Habit Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carrols Restaurant Group 1.00% 8.53% 2.48%
Habit Restaurants -0.84% 1.68% 0.79%

Institutional & Insider Ownership

86.4% of Carrols Restaurant Group shares are held by institutional investors. Comparatively, 59.6% of Habit Restaurants shares are held by institutional investors. 4.6% of Carrols Restaurant Group shares are held by company insiders. Comparatively, 16.0% of Habit Restaurants shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Carrols Restaurant Group beats Habit Restaurants on 10 of the 14 factors compared between the two stocks.

About Carrols Restaurant Group

Carrols Restaurant Group, Inc., through its subsidiaries, operates franchisee restaurants of Burger King. As of December 31, 2017, it owned and operated 807 Burger King restaurants located in 17 states of the United States. The company was founded in 1960 and is headquartered in Syracuse, New York.

About Habit Restaurants

The Habit Restaurants, Inc., a holding company, operates and franchises fast casual restaurants under The Habit Burger Grill name. It specializes in offering made-to-order char-grilled burgers and sandwiches featuring choice tri-tip steak, grilled chicken, and sushi-grade tuna cooked over an open flame; and salads, as well as sides, shakes, and malts. As of June 26, 2018, the company had 235 restaurants in California, Arizona, Utah, New Jersey, Florida, Idaho, Virginia, Nevada, Washington, Maryland, and Pennsylvania, as well as 4 international locations. The Habit Restaurants, Inc. was founded in 1969 and is headquartered in Irvine, California.

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