Chanticleer (NASDAQ:BURG) and Biglari (NASDAQ:BH) Critical Review

Biglari (NYSE:BH) and Chanticleer (NASDAQ:BURG) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Biglari 3.93% 5.58% 3.00%
Chanticleer -15.02% -70.24% -17.75%

Earnings & Valuation

This table compares Biglari and Chanticleer’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Biglari $809.89 million 0.27 $19.39 million N/A N/A
Chanticleer $40.61 million 0.11 -$6.85 million ($1.45) -0.76

Biglari has higher revenue and earnings than Chanticleer.

Insider and Institutional Ownership

6.7% of Chanticleer shares are held by institutional investors. 57.6% of Biglari shares are held by insiders. Comparatively, 18.8% of Chanticleer shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Biglari and Chanticleer, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Biglari 0 0 0 0 N/A
Chanticleer 0 0 1 0 3.00

Chanticleer has a consensus target price of $3.50, indicating a potential upside of 218.18%. Given Chanticleer’s higher probable upside, analysts clearly believe Chanticleer is more favorable than Biglari.

Summary

Biglari beats Chanticleer on 7 of the 10 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, 2018, it operated 413 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 55 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers. 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 Chanticleer

There is no company description available for Chanticleer Holdings Inc.

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