Reviewing Star Buffet (STRZ) and Cracker Barrel Old Country Store (CBRL)

Star Buffet (OTCMKTS:STRZ) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Risk and Volatility

Star Buffet has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Star Buffet and Cracker Barrel Old Country Store’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%
Cracker Barrel Old Country Store 8.14% 35.18% 13.81%

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $5.00 per share and has a dividend yield of 2.9%. Star Buffet does not pay a dividend. Cracker Barrel Old Country Store pays out 56.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Star Buffet and Cracker Barrel Old Country Store’s 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
Cracker Barrel Old Country Store $3.03 billion 1.35 $247.62 million $8.87 19.26

Cracker Barrel Old Country Store has higher revenue and earnings than Star Buffet.

Analyst Ratings

This is a summary of recent recommendations for Star Buffet and Cracker Barrel Old Country Store, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Star Buffet 0 0 0 0 N/A
Cracker Barrel Old Country Store 2 4 1 0 1.86

Cracker Barrel Old Country Store has a consensus price target of $162.82, indicating a potential downside of 4.70%. Given Cracker Barrel Old Country Store’s higher probable upside, analysts plainly believe Cracker Barrel Old Country Store is more favorable than Star Buffet.

Insider and Institutional Ownership

87.8% of Cracker Barrel Old Country Store shares are held by institutional investors. 53.6% of Star Buffet shares are held by insiders. Comparatively, 0.9% of Cracker Barrel Old Country Store shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Cracker Barrel Old Country Store beats Star Buffet on 10 of the 13 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 Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. Its Cracker Barrel stores consist of a restaurant with a gift shop. The company's restaurants serve breakfast, lunch, and dinner. Its gift shops offer various decorative and functional items, such as rocking chairs, holiday and seasonal gifts, toys, apparel, music CDs, cookware, and various other gift items, as well as pies, cornbread mixes, coffee, syrups, pancake mixes, candies, preserves, and other food items. As of September 20, 2018, the company operated 655 Cracker Barrel Old Country stores in 45 states. Cracker Barrel Old Country Store, Inc. was founded in 1969 and is headquartered in Lebanon, Tennessee.

Receive News & Ratings for Star Buffet Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Star Buffet and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply