Head-To-Head Comparison: FAT Brands (FATBB) vs. Its Rivals

FAT Brands (NASDAQ:FATBB) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it contrast to its rivals? We will compare FAT Brands to related companies based on the strength of its earnings, dividends, valuation, analyst recommendations, risk, institutional ownership and profitability.

Insider & Institutional Ownership

16.0% of shares of all “Metals & Mining” companies are owned by institutional investors. 59.9% of FAT Brands shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

FAT Brands pays an annual dividend of $0.14 per share and has a dividend yield of 15.8%. FAT Brands pays out -1.0% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 9.9% and pay out 10.8% of their earnings in the form of a dividend. FAT Brands is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares FAT Brands and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FAT Brands	-39.33%	N/A	-17.57%
FAT Brands Competitors	-1,168,050,136,845,918,000.00%	-53.06%	-2.08%

Analyst Ratings

This is a breakdown of recent ratings and target prices for FAT Brands and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FAT Brands	1	0	0	0	1.00
FAT Brands Competitors	6407	22612	32314	1801	2.47

As a group, “Metals & Mining” companies have a potential upside of 23.05%. Given FAT Brands’ rivals stronger consensus rating and higher probable upside, analysts clearly believe FAT Brands has less favorable growth aspects than its rivals.

Volatility and Risk

FAT Brands has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, FAT Brands’ rivals have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares FAT Brands and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FAT Brands	$574.14 million	-$189.85 million	-0.07
FAT Brands Competitors	$4.65 billion	$278.94 million	-26.28

FAT Brands’ rivals have higher revenue and earnings than FAT Brands. FAT Brands is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

FAT Brands rivals beat FAT Brands on 8 of the 15 factors compared.

FAT Brands Company Profile

FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.