Belmond (NYSE: BEL) and Bravo Brio Restaurant Group (NASDAQ:BBRG) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

75.5% of Belmond shares are owned by institutional investors. Comparatively, 58.5% of Bravo Brio Restaurant Group shares are owned by institutional investors. 87.6% of Belmond shares are owned by insiders. Comparatively, 7.5% of Bravo Brio Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Belmond and Bravo Brio Restaurant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Belmond 1.18% 4.00% 1.78%
Bravo Brio Restaurant Group -18.18% -137.99% 1.89%

Earnings & Valuation

This table compares Belmond and Bravo Brio Restaurant Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Belmond $547.78 million 2.43 $102.94 million $0.07 186.43
Bravo Brio Restaurant Group $408.17 million 0.11 $19.65 million ($4.99) -0.60

Belmond has higher revenue and earnings than Bravo Brio Restaurant Group. Bravo Brio Restaurant Group is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Belmond and Bravo Brio Restaurant Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Belmond 0 3 2 0 2.40
Bravo Brio Restaurant Group 0 1 0 0 2.00

Belmond presently has a consensus target price of $14.50, indicating a potential upside of 11.11%. Given Belmond’s stronger consensus rating and higher probable upside, research analysts clearly believe Belmond is more favorable than Bravo Brio Restaurant Group.

Volatility & Risk

Belmond has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Bravo Brio Restaurant Group has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Summary

Belmond beats Bravo Brio Restaurant Group on 13 of the 14 factors compared between the two stocks.

About Belmond

Belmond Ltd. (Belmond) is a hotel company and adventure travel operator. As of December 31, 2016, Belmond owned, partially-owned and/or operated 45 properties, consisting of 34 individual deluxe hotels, 29 of which are owned (including nine under long-term lease), five European tourist trains, two cruise ships in Myanmar (one of which is under long-term charter), one French canal cruise business consisting of five small canal boats, and one stand-alone restaurant in the United States. It operates through six segments: owned hotels in Europe, owned hotels in North America (including one stand-alone restaurant), owned hotels in Rest of world, owned trains and cruises, part-owned/managed hotels and part-owned/managed trains. As of December 31, 2016, Belmond’s around the world portfolio of hotels in operation consisted of 3,272 individual guest rooms and multiple-room suites (keys).

About Bravo Brio Restaurant Group

Bravo Brio Restaurant Group, Inc. is the owner and operator of approximately two Italian restaurant brands, including BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan Grille (BRIO). The Company operates approximately 120 restaurants in over 30 states. Additionally, approximately one BRIO restaurant is operated under a franchise agreement. It has over 110 operating locations, owns approximately four locations, of which over 100 are located adjacent to or in lifestyle centers and shopping malls, and over 10 are free-standing units. Its reward programs, called MyBRAVO Rewards and MyBRIO Rewards, are designed to reward guests for their continuous dining at its restaurants. Its guests can download a MyBRAVO/MyBRIO! Rewards mobile application, register their cards at BRAVO! and BRIO locations or online at www.myBRAVOReward.com or www.myBRIOReward.com. It also operates approximately one full-service American-French bistro restaurant in Columbus, Ohio under the brand Bon Vie.

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