Carlyle vs El Pollo Loco Which Outperforms?

Carlyle Group (CG) and El Pollo Loco Holdings, Inc. (LOCO) are two companies operating in vastly different industries. Carlyle Group is a global investment firm with a focus on private equity, credit, and real assets, while El Pollo Loco is a restaurant chain specializing in Mexican-style grilled chicken. Both companies are publicly traded on the stock market, with CG offering potential for high returns through its diverse range of investments and LOCO providing growth opportunities in the fast-casual dining sector. Let's delve deeper into the financial performance and prospects of these two stocks.

Carlyle or El Pollo Loco?

When comparing Carlyle and El Pollo Loco, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Carlyle and El Pollo Loco.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Carlyle has a dividend yield of 2.64%, while El Pollo Loco has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Carlyle reports a 5-year dividend growth of 2.09% year and a payout ratio of 535.91%. On the other hand, El Pollo Loco reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Carlyle P/E ratio at 161.11 and El Pollo Loco's P/E ratio at 15.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Carlyle P/B ratio is 2.99 while El Pollo Loco's P/B ratio is 1.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Carlyle has seen a 5-year revenue growth of -0.54%, while El Pollo Loco's is 0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Carlyle's ROE at 2.11% and El Pollo Loco's ROE at 9.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $52.83 for Carlyle and $12.38 for El Pollo Loco. Over the past year, Carlyle's prices ranged from $36.65 to $55.11, with a yearly change of 50.37%. El Pollo Loco's prices fluctuated between $8.17 and $14.25, with a yearly change of 74.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.