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.
