Dave & Buster’s (PLAY) & Its Peers Financial Comparison

Dave & Buster’s (NASDAQ: PLAY) is one of 56 public companies in the “Eating places” industry, but how does it weigh in compared to its competitors? We will compare Dave & Buster’s to similar companies based on the strength of its institutional ownership, dividends, risk, profitability, analyst recommendations, valuation and earnings.

Profitability

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This table compares Dave & Buster’s and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dave & Buster’s 10.61% 24.67% 9.41%
Dave & Buster’s Competitors 3.76% -2.60% 5.16%

Volatility & Risk

Dave & Buster’s has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Dave & Buster’s’ competitors have a beta of 0.55, suggesting that their average stock price is 45% less volatile than the S&P 500.

Valuation & Earnings

This table compares Dave & Buster’s and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Dave & Buster’s $1.14 billion $120.94 million 15.64
Dave & Buster’s Competitors $1.91 billion $185.16 million 19.59

Dave & Buster’s’ competitors have higher revenue and earnings than Dave & Buster’s. Dave & Buster’s is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Dave & Buster’s and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dave & Buster’s 0 0 9 0 3.00
Dave & Buster’s Competitors 546 2742 3050 127 2.43

Dave & Buster’s currently has a consensus price target of $62.56, indicating a potential upside of 53.81%. As a group, “Eating places” companies have a potential upside of 5.56%. Given Dave & Buster’s’ stronger consensus rating and higher probable upside, research analysts plainly believe Dave & Buster’s is more favorable than its competitors.

Institutional & Insider Ownership

67.0% of shares of all “Eating places” companies are owned by institutional investors. 3.4% of Dave & Buster’s shares are owned by company insiders. Comparatively, 17.2% of shares of all “Eating places” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Dave & Buster’s competitors beat Dave & Buster’s on 7 of the 13 factors compared.

Dave & Buster’s Company Profile

Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entr茅es 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 3, 2018, it owned and operated 110 stores in 37 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.

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