Rave Restaurant Group (NASDAQ:RAVE) and US Foods (NYSE:USFD) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Volatility and Risk
Rave Restaurant Group has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, US Foods has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.
This table compares Rave Restaurant Group and US Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rave Restaurant Group||N/A||69.63%||26.79%|
This is a summary of recent ratings and recommmendations for Rave Restaurant Group and US Foods, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rave Restaurant Group||0||0||0||0||N/A|
US Foods has a consensus target price of $38.14, indicating a potential upside of 34.16%. Given US Foods’ higher probable upside, analysts plainly believe US Foods is more favorable than Rave Restaurant Group.
Institutional & Insider Ownership
3.6% of Rave Restaurant Group shares are owned by institutional investors. 51.2% of Rave Restaurant Group shares are owned by insiders. Comparatively, 0.6% of US Foods 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.
Earnings and Valuation
This table compares Rave Restaurant Group and US Foods’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rave Restaurant Group||$15.12 million||1.20||$1.91 million||N/A||N/A|
|US Foods||$24.15 billion||0.26||$444.29 million||$0.91||31.24|
US Foods has higher revenue and earnings than Rave Restaurant Group.
US Foods beats Rave Restaurant Group on 6 of the 11 factors compared between the two stocks.
About Rave Restaurant Group
Rave Restaurant Group, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn trademark. It operates in two segments, Franchising and Food and Supply Distribution; and Company-Owned Restaurants. The company's buffet restaurants, which are located in free standing buildings or strip centers in retail developments that offer dine-in, carryout, and catering services, as well as delivery services. Its delco restaurants provide delivery and carryout services that are located in shopping centers or other in-line retail developments. The company's Express restaurants serve customers through various non-traditional points of sale that are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. Rave Restaurant Group, Inc. also operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademark. As of September 25, 2017, it owned, operated, and franchised approximately 300 Pie Five Pizza Co. and Pizza Inn restaurants in the United States and internationally. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.
About US Foods
US Foods Holding Corp., through its subsidiary, US Foods, Inc., markets and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. Its customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. The company was formerly known as USF Holding Corp. and changed its name to US Foods Holding Corp. in February 2016. US Foods Holding Corp. is headquartered in Rosemont, Illinois.
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