Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) and Dutch Bros (NYSE:BROS – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Risk and Volatility
Dave & Buster’s Entertainment has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500.
Insider & Institutional Ownership
91.5% of Dave & Buster’s Entertainment shares are held by institutional investors. Comparatively, 85.5% of Dutch Bros shares are held by institutional investors. 2.0% of Dave & Buster’s Entertainment shares are held by insiders. Comparatively, 42.4% of Dutch Bros shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Dave & Buster’s Entertainment | -2.32% | -7.93% | -0.26% |
| Dutch Bros | 4.87% | 9.56% | 2.82% |
Earnings & Valuation
This table compares Dave & Buster’s Entertainment and Dutch Bros”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dave & Buster’s Entertainment | $2.10 billion | 0.20 | $58.30 million | ($1.43) | -8.48 |
| Dutch Bros | $1.64 billion | 5.32 | $79.84 million | $0.64 | 82.83 |
Dutch Bros has lower revenue, but higher earnings than Dave & Buster’s Entertainment. Dave & Buster’s Entertainment is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Dave & Buster’s Entertainment and Dutch Bros, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave & Buster’s Entertainment | 1 | 4 | 3 | 0 | 2.25 |
| Dutch Bros | 0 | 3 | 20 | 1 | 2.92 |
Dave & Buster’s Entertainment currently has a consensus price target of $21.83, suggesting a potential upside of 79.99%. Dutch Bros has a consensus price target of $75.95, suggesting a potential upside of 43.28%. Given Dave & Buster’s Entertainment’s higher probable upside, equities analysts plainly believe Dave & Buster’s Entertainment is more favorable than Dutch Bros.
Summary
Dutch Bros beats Dave & Buster’s Entertainment on 12 of the 15 factors compared between the two stocks.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees 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 April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
About Dutch Bros
Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.
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