Brinker International (NYSE:EAT) & Biglari (NYSE:BH.A) Financial Comparison

Brinker International (NYSE:EAT) and Biglari (NYSE:BH.A) are both mid-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Earnings and Valuation

This table compares Brinker International and Biglari”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brinker International	$5.38 billion	1.16	$383.10 million	$9.89	14.46
Biglari	$395.26 million	9.24	$333.66 million	$146.34	10.94

Brinker International has higher revenue and earnings than Biglari. Biglari is trading at a lower price-to-earnings ratio than Brinker International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Brinker International and Biglari, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brinker International	0	6	13	1	2.75
Biglari	0	0	0	0	0.00

Brinker International presently has a consensus target price of $186.44, suggesting a potential upside of 30.36%. Given Brinker International’s stronger consensus rating and higher probable upside, equities analysts plainly believe Brinker International is more favorable than Biglari.

Insider & Institutional Ownership

7.7% of Biglari shares are owned by institutional investors. 1.4% of Brinker International shares are owned by company insiders. Comparatively, 70.9% of Biglari shares are owned by company 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 and Risk

Brinker International has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Biglari has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brinker International	7.98%	134.92%	17.04%
Biglari	N/A	N/A	N/A

Summary

Brinker International beats Biglari on 11 of the 15 factors compared between the two stocks.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

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.