Biglari Holdings (NYSE: BH) and Restaurant Brands International (NYSE:QSR) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Earnings & Valuation
This table compares Biglari Holdings and Restaurant Brands International’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Biglari Holdings||$839.07 million||0.78||$43.14 million||$12.92||24.50|
|Restaurant Brands International||$4.32 billion||3.27||$1.91 billion||$1.44||41.51|
Restaurant Brands International has higher revenue and earnings than Biglari Holdings. Biglari Holdings is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Biglari Holdings has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Biglari Holdings and Restaurant Brands International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Restaurant Brands International||0||4||11||0||2.73|
Restaurant Brands International has a consensus price target of $63.07, indicating a potential upside of 5.51%. Given Restaurant Brands International’s stronger consensus rating and higher possible upside, analysts plainly believe Restaurant Brands International is more favorable than Biglari Holdings.
This table compares Biglari Holdings and Restaurant Brands International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Restaurant Brands International||12.66%||22.71%||3.99%|
Institutional and Insider Ownership
91.1% of Biglari Holdings shares are held by institutional investors. Comparatively, 75.8% of Restaurant Brands International shares are held by institutional investors. 51.2% of Biglari Holdings shares are held by insiders. Comparatively, 4.2% of Restaurant Brands International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Restaurant Brands International pays an annual dividend of $0.76 per share and has a dividend yield of 1.3%. Biglari Holdings does not pay a dividend. Restaurant Brands International pays out 52.8% of its earnings in the form of a dividend.
Restaurant Brands International beats Biglari Holdings on 12 of the 16 factors compared between the two stocks.
About Biglari Holdings
Biglari Holdings Inc. is a holding company owning subsidiaries engaged in various business activities, including media, property and casualty insurance, and restaurants The Company’s segments include Restaurant Operations, First Guard, Maxim, Other and Corporate. The Company’s restaurant operations’ activities are conducted through approximately two restaurant concepts operated by subsidiaries Steak n Shake Inc. (Steak n Shake) and Western Sizzlin Corporation (Western). Steak n Shake is engaged in the ownership, operation and franchising of Steak n Shake restaurants. Western is engaged primarily in the franchising of restaurants. The Company’s insurance business consists of First Guard Insurance Company and its agency, 1st Guard Corporation. First Guard is a direct underwriter of commercial trucking insurance, selling physical damage and non-trucking liability insurance to truckers. Its media business consists of Maxim. Maxim’s business lies principally in media and licensing.
About Restaurant Brands International
Restaurant Brands International Inc. is a quick service restaurant (QSR) company. The Company had over 20,000 restaurants in more than 100 countries and the United States territories, as of December 31, 2016. It operates through two segments: Tim Hortons (TH) and Burger King (BK). Tim Hortons restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others. Burger King restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. The Company operates coffee roasting facilities in Hamilton, Ontario and Rochester, New York. The Company sells its raw materials and supplies, including coffee, sugar, paper goods and other restaurant supplies to Tim Hortons restaurants.
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