Cosi (OTCMKTS: COSIQ) and Dave & Buster's Entertainment (NASDAQ:PLAY) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Volatility and Risk

Cosi has a beta of -1.23, indicating that its stock price is 223% less volatile than the S&P 500. Comparatively, Dave & Buster's Entertainment has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Cosi and Dave & Buster's Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cosi -13.67% -96.97% -38.82%
Dave & Buster's Entertainment 10.20% 24.82% 9.88%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cosi and Dave & Buster's Entertainment, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cosi 0 0 0 0 N/A
Dave & Buster's Entertainment 0 0 10 0 3.00

Dave & Buster's Entertainment has a consensus target price of $74.44, indicating a potential upside of 31.41%. Given Dave & Buster's Entertainment’s higher possible upside, analysts clearly believe Dave & Buster's Entertainment is more favorable than Cosi.

Earnings & Valuation

This table compares Cosi and Dave & Buster's Entertainment’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cosi N/A N/A N/A ($0.30) -0.01
Dave & Buster's Entertainment $1.01 billion 2.29 $90.79 million $2.61 21.70

Dave & Buster's Entertainment has higher revenue and earnings than Cosi. Cosi is trading at a lower price-to-earnings ratio than Dave & Buster's Entertainment, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

37.6% of Cosi shares are owned by institutional investors. 7.8% of Cosi shares are owned by insiders. Comparatively, 3.8% of Dave & Buster's Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Dave & Buster's Entertainment beats Cosi on 9 of the 11 factors compared between the two stocks.

About Cosi

Cosi, Inc. is an international fast casual restaurant company. The Company offers its flatbread. Its menu features made-to-order sandwiches, hand-tossed salads, bowls, breakfast wraps, melts, soups, signature Squagels, artisan flatbread pizzas, S’mores, snacks and desserts. It also offers handcrafted beverages and a variety of coffee-based and specialty beverages. Its sandwiches include tbm, turkey and brie, tuna, turkey avocado and chicken parmesan melt. Its cosi salads are made with fresh ingredients and its own signature dressings. Its soups include tomato basil, turkey chili, smart fit chicken noodle, and mediterranean lentil. Its handcrafted beverages include iced tea, raspberry iced tea, country club iced tea, mojito lemonade, raspberry mojito lemonade. It also offers catering services to its customers. The Company operates in 43 Company-owned and 30 franchise restaurants in fourteen states in the United States, the District of Columbia, Costa Rica and the United Arab Emirates.

About Dave & Buster's Entertainment

Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of ‘Fun American New Gourmet’ entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster’s name. As of June 6, 2017, it owned and operated 99 stores located in 34 states and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.

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