First Watch Restaurant Group (NASDAQ:FWRG) and Sportradar Group (NASDAQ:SRAD) Critical Review

Sportradar Group (NASDAQ:SRAD) and First Watch Restaurant Group (NASDAQ:FWRG) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Sportradar Group and First Watch Restaurant Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sportradar Group	$1.39 billion	2.71	$113.50 million	$0.06	208.77
First Watch Restaurant Group	$1.32 billion	0.55	$19.43 million	$0.29	40.41

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

Profitability

This table compares Sportradar Group and First Watch Restaurant Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sportradar Group	1.23%	1.89%	0.65%
First Watch Restaurant Group	1.35%	2.85%	1.01%

Volatility and Risk

Sportradar Group has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, First Watch Restaurant Group has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

96.1% of First Watch Restaurant Group shares are owned by institutional investors. 85.0% of Sportradar Group shares are owned by insiders. Comparatively, 6.1% of First Watch Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Sportradar Group and First Watch Restaurant Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sportradar Group	1	8	10	2	2.62
First Watch Restaurant Group	0	2	8	1	2.91

Sportradar Group currently has a consensus target price of $20.41, indicating a potential upside of 62.96%. First Watch Restaurant Group has a consensus target price of $18.56, indicating a potential upside of 58.35%. Given Sportradar Group’s higher probable upside, equities analysts plainly believe Sportradar Group is more favorable than First Watch Restaurant Group.

Summary

Sportradar Group beats First Watch Restaurant Group on 9 of the 15 factors compared between the two stocks.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.