Contrasting Texas Roadhouse (NASDAQ:TXRH) and Latitude 360 (OTCMKTS:LATX)

Latitude 360 (OTCMKTS:LATX) and Texas Roadhouse (NASDAQ:TXRH) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Earnings and Valuation

This table compares Latitude 360 and Texas Roadhouse”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latitude 360	N/A	N/A	N/A	N/A	N/A
Texas Roadhouse	$5.88 billion	2.03	$405.55 million	$6.09	29.67

Texas Roadhouse has higher revenue and earnings than Latitude 360.

Profitability

This table compares Latitude 360 and Texas Roadhouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latitude 360	N/A	N/A	N/A
Texas Roadhouse	6.90%	27.88%	12.23%

Insider & Institutional Ownership

94.8% of Texas Roadhouse shares are owned by institutional investors. 24.5% of Latitude 360 shares are owned by insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Latitude 360 and Texas Roadhouse, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latitude 360	0	0	0	0	0.00
Texas Roadhouse	0	13	12	1	2.54

Texas Roadhouse has a consensus price target of $196.55, indicating a potential upside of 8.77%. Given Texas Roadhouse’s stronger consensus rating and higher probable upside, analysts clearly believe Texas Roadhouse is more favorable than Latitude 360.

Summary

Texas Roadhouse beats Latitude 360 on 9 of the 10 factors compared between the two stocks.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.