Fogo de Chao (NASDAQ: FOGO) is one of 22 public companies in the “Quick Service Restaurants” industry, but how does it compare to its competitors? We will compare Fogo de Chao to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Institutional & Insider Ownership

85.7% of Fogo de Chao shares are owned by institutional investors. Comparatively, 79.8% of shares of all “Quick Service Restaurants” companies are owned by institutional investors. 82.8% of Fogo de Chao shares are owned by insiders. Comparatively, 16.3% of shares of all “Quick Service Restaurants” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Fogo de Chao and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Fogo de Chao $304.00 million $52.73 million 15.44
Fogo de Chao Competitors $3.06 billion $846.52 million 29.66

Fogo de Chao’s competitors have higher revenue and earnings than Fogo de Chao. Fogo de Chao 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.

Risk and Volatility

Fogo de Chao has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Fogo de Chao’s competitors have a beta of 0.53, meaning that their average stock price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Fogo de Chao and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fogo de Chao 0 2 3 0 2.60
Fogo de Chao Competitors 328 1475 1691 85 2.43

Fogo de Chao currently has a consensus target price of $16.70, indicating a potential upside of 36.89%. As a group, “Quick Service Restaurants” companies have a potential upside of 9.92%. Given Fogo de Chao’s stronger consensus rating and higher possible upside, research analysts plainly believe Fogo de Chao is more favorable than its competitors.

Profitability

This table compares Fogo de Chao and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fogo de Chao 7.40% 8.08% 4.58%
Fogo de Chao Competitors 6.90% 12.59% 9.54%

Summary

Fogo de Chao competitors beat Fogo de Chao on 7 of the 13 factors compared.

About Fogo de Chao

Fogo de Chao, Inc. is a United States-based holding company. The Company, through its subsidiaries, operates upscale Brazilian churrascaria steakhouses under the brand of Fogo de Chao. The Company owns 100% of Brasa (Purchaser) Inc. (Brasa Purchaser), which owns 100% of Brasa (Holdings) Inc. (Brasa Holdings). The Company operates through two segments: United States and Brazil. It specializes in fire-roasting meats utilizing the centuries-old Southern Brazilian cooking technique of churrasco. The Company offers its guests a tasting menu of meats featuring up to 20 cuts, simply seasoned and fire-roasted to expose their natural flavors. The Company operates approximately 26 restaurants in the United States, 10 in Brazil and one in Mexico. The Company operates a range of restaurant formats, including in-line and free-standing locations. Its restaurants range in size from approximately 7,000 to 16,000 square feet, with seating from 200 to 500 guests.

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