Papa Murphy’s (NASDAQ:FRSH) vs. Bojangles (NASDAQ:BOJA) Critical Analysis

Papa Murphy’s (NASDAQ:FRSH) and Bojangles (NASDAQ:BOJA) are both small-cap 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.

Valuation and Earnings

This table compares Papa Murphy’s and Bojangles’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Papa Murphy’s $126.43 million 0.87 $4.32 million N/A N/A
Bojangles $547.44 million 1.10 $72.00 million $0.83 19.39

Bojangles has higher revenue and earnings than Papa Murphy’s.

Insider and Institutional Ownership

57.7% of Papa Murphy’s shares are held by institutional investors. Comparatively, 90.5% of Bojangles shares are held by institutional investors. 13.1% of Papa Murphy’s shares are held by insiders. Comparatively, 52.9% of Bojangles 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.

Risk & Volatility

Papa Murphy’s has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Bojangles has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Papa Murphy’s and Bojangles, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Papa Murphy’s 0 0 0 0 N/A
Bojangles 0 2 0 0 2.00

Bojangles has a consensus price target of $16.00, indicating a potential downside of 0.56%. Given Bojangles’ higher possible upside, analysts plainly believe Bojangles is more favorable than Papa Murphy’s.

Profitability

This table compares Papa Murphy’s and Bojangles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Papa Murphy’s 3.77% 6.50% 2.62%
Bojangles 9.42% 9.95% 5.18%

Summary

Bojangles beats Papa Murphy’s on 11 of the 11 factors compared between the two stocks.

Papa Murphy’s Company Profile

Papa Murphy's Holdings, Inc., together with its subsidiaries, owns, operates, and franchises Take ‘N' Bake pizza stores. The company operates in three segments: Franchise, Company Stores, and Brand Funds. As of December 31, 2018, it operated approximately 1,437 stores, including 1,294 franchised and 106 company-owned stores in 37 states, as well as 12 stores in Canada and 25 stores in the Middle East. The company was founded in 1981 and is headquartered in Vancouver, Washington.

Bojangles Company Profile

Bojangles', Inc. develops, operates, and franchises limited service restaurants in the United States. Its restaurants offer made-from-scratch biscuit breakfast sandwiches, hand-breaded bone-in chicken, fixin's, and iced tea. As of July 1, 2018, the company operated 766 system-wide restaurants, including 325 company-operated and 441 franchised restaurants primarily located in the Southeastern United States. Bojangles', Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.

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