Star Buffet (STRZ) & Dine Brands Global (DIN) Head to Head Review

Star Buffet (OTCMKTS:STRZ) and Dine Brands Global (NYSE:DIN) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

This table compares Star Buffet and Dine Brands Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Star Buffet -0.78% N/A -2.86%
Dine Brands Global 19.41% -40.87% 4.88%

Volatility and Risk

Star Buffet has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Dine Brands Global has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Star Buffet and Dine Brands Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Star Buffet 0 0 0 0 N/A
Dine Brands Global 0 1 2 0 2.67

Dine Brands Global has a consensus target price of $111.50, suggesting a potential upside of 27.79%. Given Dine Brands Global’s higher probable upside, analysts plainly believe Dine Brands Global is more favorable than Star Buffet.

Dividends

Dine Brands Global pays an annual dividend of $2.52 per share and has a dividend yield of 2.9%. Star Buffet does not pay a dividend. Dine Brands Global pays out 60.7% of its earnings in the form of a dividend. Dine Brands Global has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares Star Buffet and Dine Brands Global’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Star Buffet $26.52 million 0.07 $120,000.00 N/A N/A
Dine Brands Global $604.82 million 2.55 -$330.53 million $4.15 21.02

Star Buffet has higher earnings, but lower revenue than Dine Brands Global.

Summary

Dine Brands Global beats Star Buffet on 8 of the 12 factors compared between the two stocks.

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.

About Dine Brands Global

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally. It operates through four segments: Franchise Operations, Rental Operations, Company Restaurant Operations, and Financing Operations. The company owns and franchises two restaurant concepts, including Applebee's Neighborhood Grill & Bar (Applebee's) in the bar and grill segment of the casual dining category of the restaurant industry; and International House of Pancakes (IHOP) in the family dining category of the restaurant industry. Its Applebee's restaurants offer casual food, drinks, casual dining, and table services; and IHOP restaurants provide full table services, and food and beverage offerings. As of December 31, 2017, the company had 1,936 Applebee's franchised restaurants, and 1,786 IHOP franchised and area licensed restaurants. It is also involved in the lease or sublease of 693 IHOP franchised restaurants and 1 Applebee's franchised restaurant. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Glendale, California.

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