DTS8 Coffee (OTCMKTS:BKCT) and Chefs’ Warehouse (NASDAQ:CHEF) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Volatility and Risk
DTS8 Coffee has a beta of -0.77, indicating that its share price is 177% less volatile than the S&P 500. Comparatively, Chefs’ Warehouse has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
This is a breakdown of recent recommendations for DTS8 Coffee and Chefs’ Warehouse, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chefs’ Warehouse has a consensus target price of $32.60, indicating a potential downside of 9.87%. Given Chefs’ Warehouse’s higher possible upside, analysts plainly believe Chefs’ Warehouse is more favorable than DTS8 Coffee.
This table compares DTS8 Coffee and Chefs’ Warehouse’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
80.5% of Chefs’ Warehouse shares are owned by institutional investors. 26.6% of DTS8 Coffee shares are owned by insiders. Comparatively, 20.6% of Chefs’ Warehouse shares are owned 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.
Earnings and Valuation
This table compares DTS8 Coffee and Chefs’ Warehouse’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chefs’ Warehouse||$1.30 billion||0.83||$14.36 million||$0.44||82.20|
Chefs’ Warehouse has higher revenue and earnings than DTS8 Coffee.
Chefs’ Warehouse beats DTS8 Coffee on 8 of the 10 factors compared between the two stocks.
About DTS8 Coffee
DTS8 Coffee Company, Ltd., through its subsidiaries, engages in the roasting, marketing, and sale of gourmet roasted coffee in Shanghai and other parts of China. It markets and sells its coffee under the DTS8 Coffee, Don Manuel, and private label brands through distribution channels that serve consumers at restaurants, multi-location coffee shops, and offices. The company was formerly known as Berkeley Coffee & Tea, Inc. and changed its name to DTS8 Coffee Company, Ltd. in January 2013. DTS8 Coffee Company, Ltd. was founded in 2009 and is based in Jiangqiao, China.
About Chefs’ Warehouse
The Chefs' Warehouse, Inc., together with its subsidiaries, distributes specialty food products in the United States and Canada. Its product portfolio includes approximately 48,000 stock-keeping units comprising specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products. The company also offers a line of center-of-the-plate products, including custom cut beef, seafood, and hormone-free poultry, as well as food products, such as cooking oils, butter, eggs, milk, and flour. It serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. The company markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs' Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.
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