Papa John’s Int’l (NASDAQ:PZZA) and Granite City Food & Brewery (OTCMKTS:GCFB) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Risk & Volatility

Papa John’s Int’l has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Granite City Food & Brewery has a beta of -2.88, suggesting that its stock price is 388% less volatile than the S&P 500.

Dividends

Papa John’s Int’l pays an annual dividend of $0.90 per share and has a dividend yield of 2.1%. Granite City Food & Brewery does not pay a dividend. Papa John’s Int’l pays out 34.4% of its earnings in the form of a dividend. Papa John’s Int’l has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Papa John’s Int’l and Granite City Food & Brewery, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Papa John’s Int’l 0 1 5 0 2.83
Granite City Food & Brewery 0 0 0 0 N/A

Papa John’s Int’l presently has a consensus target price of $57.20, suggesting a potential upside of 34.40%. Given Papa John’s Int’l’s higher probable upside, equities analysts clearly believe Papa John’s Int’l is more favorable than Granite City Food & Brewery.

Earnings and Valuation

This table compares Papa John’s Int’l and Granite City Food & Brewery’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Papa John’s Int’l $1.78 billion 0.75 $102.29 million $2.62 16.24
Granite City Food & Brewery N/A N/A N/A N/A N/A

Papa John’s Int’l has higher revenue and earnings than Granite City Food & Brewery.

Profitability

This table compares Papa John’s Int’l and Granite City Food & Brewery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Papa John’s Int’l 2.64% -27.98% 10.97%
Granite City Food & Brewery N/A N/A N/A

Insider and Institutional Ownership

80.5% of Papa John’s Int’l shares are held by institutional investors. 31.8% of Papa John’s Int’l shares are held by insiders. Comparatively, 26.3% of Granite City Food & Brewery shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Papa John’s Int’l beats Granite City Food & Brewery on 10 of the 12 factors compared between the two stocks.

About Papa John’s Int’l

Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through five segments: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, International Operations, and All Others. The company also operates dine-in and delivery restaurants. As of December 31, 2017, it operated 5,199 Papa John's restaurants, which included 743 company-owned and 4,456 franchised restaurants. The company was founded in 1984 and is headquartered in Louisville, Kentucky.

About Granite City Food & Brewery

Granite City Food & Brewery, Ltd. operates casual dining restaurants in the United States. The company's upscale casual dining restaurants include the Granite City Food & Brewery restaurant that offers various menu items and handcrafted beers, as well as other regional craft beers; and the Cadillac Ranch All American Bar & Grill restaurant that offers American cuisine, including homemade meatloaf and pasta dishes. As of December 26, 2017, it operated 32 Granite City restaurants in 13 states; and 4 Cadillac Ranch restaurants in 4 states. The company was founded in 1997 and is headquartered in Bloomington, Minnesota. Granite City Food & Brewery, Ltd. is a subsidiary of Concept Development Partners LLC.

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