Head to Head Analysis: Restaurant Brands International (NYSE:QSR) and Biglari (NYSE:BH.A)

Biglari (NYSE:BH.A) and Restaurant Brands International (NYSE:QSR) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Biglari and Restaurant Brands International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biglari	0	0	0	0	0.00
Restaurant Brands International	1	10	12	0	2.48

Restaurant Brands International has a consensus target price of $76.62, indicating a potential upside of 11.32%. Given Restaurant Brands International’s stronger consensus rating and higher possible upside, analysts clearly believe Restaurant Brands International is more favorable than Biglari.

Earnings & Valuation

This table compares Biglari and Restaurant Brands International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biglari	$362.11 million	12.93	$333.66 million	$146.34	14.03
Restaurant Brands International	$9.43 billion	2.53	$776.00 million	$2.36	29.16

Restaurant Brands International has higher revenue and earnings than Biglari. Biglari 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.

Profitability

This table compares Biglari and Restaurant Brands International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biglari	N/A	N/A	N/A
Restaurant Brands International	8.23%	32.73%	6.47%

Institutional and Insider Ownership

7.7% of Biglari shares are owned by institutional investors. Comparatively, 82.3% of Restaurant Brands International shares are owned by institutional investors. 70.9% of Biglari shares are owned by insiders. Comparatively, 1.3% of Restaurant Brands International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Biglari has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Summary

Restaurant Brands International beats Biglari on 9 of the 14 factors compared between the two stocks.

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2019, it operated 368 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 48 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers; and operates oil and natural gas properties offshore in the Gulf of Mexico. In addition, it publishes and sells magazines, and related publishing products under the MAXIM and Maxim brand name; and licenses media products and services, as well as is involved in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.