Bloomin’ Brands (NASDAQ:BLMN) and Del Frisco’s Restaurant Group (NASDAQ:DFRG) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
This table compares Bloomin’ Brands and Del Frisco’s Restaurant Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Del Frisco’s Restaurant Group||-21.62%||-1.15%||-0.36%|
This is a summary of recent ratings and target prices for Bloomin’ Brands and Del Frisco’s Restaurant Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Del Frisco’s Restaurant Group||0||3||0||0||2.00|
Bloomin’ Brands currently has a consensus target price of $21.44, suggesting a potential upside of 20.20%. Del Frisco’s Restaurant Group has a consensus target price of $8.67, suggesting a potential upside of 8.74%. Given Bloomin’ Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Bloomin’ Brands is more favorable than Del Frisco’s Restaurant Group.
Valuation and Earnings
This table compares Bloomin’ Brands and Del Frisco’s Restaurant Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bloomin’ Brands||$4.13 billion||0.40||$107.10 million||$1.50||11.89|
|Del Frisco’s Restaurant Group||$378.22 million||0.70||-$76.30 million||($0.18)||-44.28|
Bloomin’ Brands has higher revenue and earnings than Del Frisco’s Restaurant Group. Del Frisco’s Restaurant Group is trading at a lower price-to-earnings ratio than Bloomin’ Brands, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.2% of Bloomin’ Brands shares are held by institutional investors. 4.4% of Bloomin’ Brands shares are held by company insiders. Comparatively, 2.0% of Del Frisco’s Restaurant Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Bloomin’ Brands has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500. Comparatively, Del Frisco’s Restaurant Group has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Bloomin’ Brands pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Del Frisco’s Restaurant Group does not pay a dividend. Bloomin’ Brands pays out 26.7% of its earnings in the form of a dividend. Bloomin’ Brands has increased its dividend for 3 consecutive years.
Bloomin’ Brands beats Del Frisco’s Restaurant Group on 14 of the 17 factors compared between the two stocks.
Bloomin’ Brands Company Profile
Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. The company operates through two segments, U.S. and International. Its restaurant portfolio has four concepts, including Outback Steakhouse, a casual steakhouse restaurant; Carrabba's Italian Grill, a casual Italian restaurant; Bonefish Grill, an upscale casual seafood restaurant; and Fleming's Prime Steakhouse & Wine Bar, a contemporary steakhouse. As of December 31, 2017, the company owned and operated 1,075 restaurants and franchised 165 restaurants. Bloomin' Brands, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.
Del Frisco’s Restaurant Group Company Profile
Del Frisco's Restaurant Group, Inc. develops, owns, and operates restaurants in the United States. It owns and operates restaurants under the Del Frisco's Double Eagle Steak House, Del Frisco's Grille, Barcelona Wine Bar, and bartaco brand names. The company offers steaks, as well as other menu selections, such as chops, fresh seafood, tapas, street food, and wines and cocktails. As of November 6, 2018, it operated 69 restaurants in 16 states and the District of Columbia. The company was founded in 1981 and is headquartered in Irving, Texas.
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