Cracker Barrel Old Country Store (NASDAQ: CBRL) and Potbelly Corporation (NASDAQ:PBPB) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Cracker Barrel Old Country Store and Potbelly Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cracker Barrel Old Country Store 1 8 0 0 1.89
Potbelly Corporation 0 3 1 0 2.25

Cracker Barrel Old Country Store presently has a consensus target price of $158.78, suggesting a potential upside of 2.68%. Potbelly Corporation has a consensus target price of $13.67, suggesting a potential upside of 14.85%. Given Potbelly Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Potbelly Corporation is more favorable than Cracker Barrel Old Country Store.

Profitability

This table compares Cracker Barrel Old Country Store and Potbelly Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cracker Barrel Old Country Store 6.90% 35.49% 13.26%
Potbelly Corporation 0.54% 7.80% 5.48%

Insider and Institutional Ownership

86.2% of Cracker Barrel Old Country Store shares are owned by institutional investors. Comparatively, 67.7% of Potbelly Corporation shares are owned by institutional investors. 0.9% of Cracker Barrel Old Country Store shares are owned by insiders. Comparatively, 9.6% of Potbelly Corporation shares are owned 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.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.1%. Potbelly Corporation does not pay a dividend. Cracker Barrel Old Country Store pays out 57.3% of its earnings in the form of a dividend. Cracker Barrel Old Country Store has raised its dividend for 7 consecutive years.

Valuation & Earnings

This table compares Cracker Barrel Old Country Store and Potbelly Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cracker Barrel Old Country Store $2.93 billion 1.27 $201.89 million $8.38 18.45
Potbelly Corporation $407.13 million 0.72 $8.21 million $0.09 132.24

Cracker Barrel Old Country Store has higher revenue and earnings than Potbelly Corporation. Cracker Barrel Old Country Store is trading at a lower price-to-earnings ratio than Potbelly Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cracker Barrel Old Country Store has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Potbelly Corporation has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Summary

Cracker Barrel Old Country Store beats Potbelly Corporation on 10 of the 17 factors compared between the two stocks.

Cracker Barrel Old Country Store Company Profile

Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods. Its restaurants offer home-style country cooking featuring of its own recipes. Its restaurants serve breakfast, lunch and dinner. Its breakfast items include juices, eggs, pancakes, grits, and a range of biscuit specialties. Its lunch and dinner items include country ham, chicken and dumplings, chicken fried chicken, meatloaf, fresh side items and specialty items, such as pinto beans and turnip greens.

Potbelly Corporation Company Profile

Potbelly Corporation owns and operates Potbelly Sandwich Works sandwich shops in the United States. The Company has domestic and international franchise operations of Potbelly Sandwich Works sandwich shops. As of December 25, 2016, the Company operated Potbelly Sandwich Works sandwich shops in 29 states and the District of Columbia. As of December 25, 2016, the Company had a domestic base of 441 shops in 29 states and the District of Columbia. Of these, the company operated 411 shops, and franchisees operated 30 shops, as of December 25, 2016. As of December 25, 2016, the Company had 13 international franchised shops, which included 11 shops in the Middle East, a shop in the United Kingdom and a shop in Canada. As of December 25, 2016, the Company had domestic franchise shops in Arkansas, Iowa, Illinois, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Texas and Virginia.

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