Vox Royalty (NASDAQ:VOXR – Get Free Report) and FAT Brands (NASDAQ:FAT – Get Free Report) are both small-cap materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
46.0% of Vox Royalty shares are owned by institutional investors. Comparatively, 6.9% of FAT Brands shares are owned by institutional investors. 15.7% of FAT Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Vox Royalty has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, FAT Brands has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Vox Royalty and FAT Brands, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vox Royalty | 0 | 1 | 4 | 0 | 2.80 |
| FAT Brands | 1 | 1 | 0 | 0 | 1.50 |
Vox Royalty presently has a consensus price target of $8.00, suggesting a potential upside of 62.60%. Given Vox Royalty’s stronger consensus rating and higher possible upside, research analysts clearly believe Vox Royalty is more favorable than FAT Brands.
Earnings and Valuation
This table compares Vox Royalty and FAT Brands”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vox Royalty | $16.62 million | 20.58 | $5.89 million | $0.67 | 7.34 |
| FAT Brands | $574.14 million | 0.01 | -$189.85 million | ($13.35) | -0.01 |
Vox Royalty has higher earnings, but lower revenue than FAT Brands. FAT Brands is trading at a lower price-to-earnings ratio than Vox Royalty, indicating that it is currently the more affordable of the two stocks.
Dividends
Vox Royalty pays an annual dividend of $0.06 per share and has a dividend yield of 1.2%. FAT Brands pays an annual dividend of $0.14 per share and has a dividend yield of 86.1%. Vox Royalty pays out 9.0% of its earnings in the form of a dividend. FAT Brands pays out -1.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FAT Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Vox Royalty and FAT Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vox Royalty | 144.32% | 13.41% | 12.00% |
| FAT Brands | -39.33% | N/A | -17.99% |
Summary
Vox Royalty beats FAT Brands on 11 of the 16 factors compared between the two stocks.
About Vox Royalty
Vox Royalty Corp. operates as a mining royalty and streaming company. The company holds a portfolio of 60 royalties and streaming assets. It operates in Australia, Canada, Peru, Brazil, South Africa, Mexico, and the United States. Vox Royalty Corp. was founded in 2014 and is based in Toronto, Canada.
About FAT Brands
FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.
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