NDLS vs NATH

For growth investors, Nathan's Famous, Inc.

(NATH) is the stronger pick with 6. 9% revenue growth year-over-year, versus 0. 4% for Noodles & Company (NDLS). Nathan's Famous, Inc. (NATH) offers the better valuation at 17. 3x trailing P/E, making it the more compelling value choice. Analysts rate Noodles & Company (NDLS) a "Hold" — based on 18 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Nathan's Famous, Inc.

(NATH) delivered a total return of +72. 1%, compared to -87. 6% for Noodles & Company (NDLS). Over 10 years, the gap is even starker: NATH returned +163. 6% versus NDLS's -86. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Nathan's Famous, Inc.

(NATH) is the lower-risk stock at 0. 52β versus Noodles & Company's 0. 59β — meaning NDLS is approximately 14% more volatile than NATH relative to the S&P 500.

By revenue growth (latest reported year), Nathan's Famous, Inc.

(NATH) is pulling ahead at 6. 9% versus 0. 4% for Noodles & Company (NDLS). On earnings-per-share growth, the picture is similar: Nathan's Famous, Inc. grew EPS 22. 3% year-over-year, compared to -15. 0% for Noodles & Company. Over a 3-year CAGR, NATH leads at 8. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Nathan's Famous, Inc.

(NATH) is the more profitable company, earning 16. 2% net margin versus -8. 6% for Noodles & Company — meaning it keeps 16. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NATH leads at 24. 6% versus -1. 0% for NDLS. At the gross margin level — before operating expenses — NATH leads at 35. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

In this comparison, NATH (2.

0% yield) pays a dividend. NDLS does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Nathan's Famous, Inc.

(NATH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 52), 2. 0% yield, +163. 6% 10Y return). Both have compounded well over 10 years (NATH: +163. 6%, NDLS: -86. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: NDLS is a small-cap quality compounder stock; NATH is a small-cap deep-value stock. NATH pays a dividend while NDLS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.