Comparing Yum China (YUMC) and Country Syl Ckng Restaurant Chain (CCSC)

Yum China (NYSE: YUMC) and Country Syl Ckng Restaurant Chain (NYSE:CCSC) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Yum China and Country Syl Ckng Restaurant Chain, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yum China 0 3 8 0 2.73
Country Syl Ckng Restaurant Chain 0 0 0 0 N/A

Yum China currently has a consensus target price of $44.41, indicating a potential upside of 10.97%. Given Yum China’s higher probable upside, research analysts plainly believe Yum China is more favorable than Country Syl Ckng Restaurant Chain.

Valuation and Earnings

This table compares Yum China and Country Syl Ckng Restaurant Chain’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yum China $6.75 billion 2.28 $502.00 million $1.47 27.22
Country Syl Ckng Restaurant Chain N/A N/A N/A $0.16 32.31

Yum China has higher revenue and earnings than Country Syl Ckng Restaurant Chain. Yum China 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Yum China 8.43% 21.35% 14.21%
Country Syl Ckng Restaurant Chain 3.68% 5.63% 4.72%

Institutional and Insider Ownership

80.1% of Yum China shares are held by institutional investors. 0.2% of Yum China shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Yum China pays an annual dividend of $0.10 per share and has a dividend yield of 0.2%. Country Syl Ckng Restaurant Chain does not pay a dividend. Yum China pays out 6.8% of its earnings in the form of a dividend.

Summary

Yum China beats Country Syl Ckng Restaurant Chain on 10 of the 12 factors compared between the two stocks.

About Yum China

Yum China Holdings, Inc. is a restaurant company. The Company’s segments include KFC, Pizza Hut Casual Dining, and All Other Segments, including Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell. As of December 31, 2016, the Company had over 7,500 restaurants in China. Its restaurant base consists of various restaurant concepts. The Company’s restaurants in each of its concept offer consumers the ability to dine in and/or carry out food. In addition, KFC, Pizza Hut Casual Dining, Pizza Hut Home Service and East Dawning offer delivery service. KFC is the quick-service restaurant (QSR) brand. Pizza Hut Casual Dining is the casual dining restaurant (CDR) brand. As of December 31, 2016, the Company had over 360 Pizza Hut Home Service units in over 50 cities in China. The Little Sheep concept specializes in Hot Pot cooking. East Dawning is a Chinese food QSR brand. Taco Bell is a QSR brand specializing in Mexican-style food.

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.

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