Head to Head Analysis: Brinker International (NYSE:EAT) vs. Chuy’s (NYSE:CHUY)

Brinker International (NYSE:EAT) and Chuy’s (NASDAQ:CHUY) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Brinker International and Chuy’s, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brinker International 2 9 6 0 2.24
Chuy’s 0 5 1 0 2.17

Brinker International currently has a consensus price target of $44.67, indicating a potential upside of 12.43%. Chuy’s has a consensus price target of $27.00, indicating a potential upside of 13.59%. Given Chuy’s’ higher possible upside, analysts plainly believe Chuy’s is more favorable than Brinker International.

Risk & Volatility

Brinker International has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Chuy’s has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Profitability

This table compares Brinker International and Chuy’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brinker International 4.75% -19.10% 11.88%
Chuy’s 1.37% 7.89% 4.81%

Dividends

Brinker International pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. Chuy’s does not pay a dividend. Brinker International pays out 43.4% of its earnings in the form of a dividend. Brinker International has raised its dividend for 8 consecutive years.

Valuation and Earnings

This table compares Brinker International and Chuy’s’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brinker International $3.14 billion 0.47 $125.88 million $3.50 11.34
Chuy’s $398.20 million 1.00 $5.54 million $0.88 26.93

Brinker International has higher revenue and earnings than Chuy’s. Brinker International is trading at a lower price-to-earnings ratio than Chuy’s, indicating that it is currently the more affordable of the two stocks.

Summary

Brinker International beats Chuy’s on 10 of the 15 factors compared between the two stocks.

Brinker International Company Profile

Brinker International, Inc., together with its subsidiaries, owns, develops, operates, and franchises casual dining restaurants in the United States and internationally. As of June 27, 2018, it owned, operated, or franchised 1,686 restaurants comprising 997 company-owned restaurants and 689 franchised restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brand names. The company was founded in 1975 and is based in Dallas, Texas.

Chuy’s Company Profile

Chuy's Holdings, Inc., through its subsidiaries, owns and operates full-service restaurants under the Chuy's name in Texas and 19 states in the Southeastern and Midwestern United States. As of December 30, 2018, it operated 100 restaurants. The company was founded in 1982 and is headquartered in Austin, Texas.

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