Famous Dave’s of America (NASDAQ:DAVE) and Ark Restaurants (NASDAQ:ARKR) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Dividends

Ark Restaurants pays an annual dividend of $1.00 per share and has a dividend yield of 5.0%. Famous Dave’s of America does not pay a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Famous Dave’s of America and Ark Restaurants, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Famous Dave’s of America 0 0 1 0 3.00
Ark Restaurants 0 0 0 0 N/A

Famous Dave’s of America presently has a consensus price target of $9.00, indicating a potential upside of 55.17%. Given Famous Dave’s of America’s higher probable upside, equities analysts clearly believe Famous Dave’s of America is more favorable than Ark Restaurants.

Risk & Volatility

Famous Dave’s of America has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Ark Restaurants has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Famous Dave’s of America and Ark Restaurants’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Famous Dave’s of America $54.89 million 0.98 $4.86 million N/A N/A
Ark Restaurants $159.99 million 0.43 $4.65 million N/A N/A

Famous Dave’s of America has higher earnings, but lower revenue than Ark Restaurants.

Profitability

This table compares Famous Dave’s of America and Ark Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Famous Dave’s of America 8.86% 26.14% 13.41%
Ark Restaurants 1.84% 9.32% 4.83%

Insider and Institutional Ownership

51.9% of Famous Dave’s of America shares are owned by institutional investors. Comparatively, 23.0% of Ark Restaurants shares are owned by institutional investors. 43.0% of Famous Dave’s of America shares are owned by insiders. Comparatively, 41.6% of Ark Restaurants shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Famous Dave’s of America beats Ark Restaurants on 10 of the 13 factors compared between the two stocks.

Famous Dave’s of America Company Profile

Famous Dave's of America, Inc. develops, owns, operates, and franchises barbeque restaurants under the Famous Dave's name. It offers smoked, barbequed, and grilled meats, as well as entrée items and delicious side dishes that are prepared using prepared proprietary seasonings, sauces, and mixes. The company operates full-service and counter-service restaurants. As of March 5, 2018, it owned 16 locations and franchised 135 restaurants in 32 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates. Famous Dave's of America, Inc. was founded in 1994 and is headquartered in Minnetonka, Minnesota.

Ark Restaurants Company Profile

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of September 29, 2018, it owned and/or operated 20 restaurants and bars, including 5 facilities located in New York City; 2 in Washington, D.C.; 5 in Las Vegas, Nevada; 3 in Atlantic City, New Jersey; 1 in the Faneuil Hall Marketplace in Boston, Massachusetts; 2 on the east coast of Florida; and 2 on the gulf coast of Alabama, as well as had 19 fast food concepts and catering operations. The company was founded in 1983 and is based in New York, New York.

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