Contrasting Texas Roadhouse (NASDAQ:TXRH) and Latitude 360 (OTCMKTS:LATX)

Texas Roadhouse (NASDAQ:TXRH) and Latitude 360 (OTCMKTS:LATX) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Texas Roadhouse and Latitude 360, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Roadhouse	0	12	12	1	2.56
Latitude 360	0	0	0	0	0.00

Texas Roadhouse presently has a consensus price target of $196.82, indicating a potential upside of 10.06%. Given Texas Roadhouse’s stronger consensus rating and higher possible upside, analysts plainly believe Texas Roadhouse is more favorable than Latitude 360.

Insider and Institutional Ownership

94.8% of Texas Roadhouse shares are held by institutional investors. 0.5% of Texas Roadhouse shares are held by insiders. Comparatively, 24.5% of Latitude 360 shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Texas Roadhouse and Latitude 360″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Roadhouse	$5.88 billion	2.01	$433.59 million	$6.09	29.36
Latitude 360	N/A	N/A	N/A	N/A	N/A

Texas Roadhouse has higher revenue and earnings than Latitude 360.

Profitability

This table compares Texas Roadhouse and Latitude 360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Roadhouse	6.90%	28.05%	12.53%
Latitude 360	N/A	N/A	N/A

Summary

Texas Roadhouse beats Latitude 360 on 9 of the 10 factors compared between the two stocks.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.