Cracker Barrel Old Country Store (NASDAQ: CBRL) and Papa John’s International (NASDAQ:PZZA) are both mid-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitabiliy, earnings, risk, institutional ownership, dividends and valuation.

Volatility & Risk

Cracker Barrel Old Country Store has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cracker Barrel Old Country Store and Papa John’s International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cracker Barrel Old Country Store $2.93 billion 1.30 $391.90 million $8.27 19.17
Papa John’s International $1.73 billion 1.63 $197.58 million $2.83 27.05

Cracker Barrel Old Country Store has higher revenue and earnings than Papa John’s International. Cracker Barrel Old Country Store is trading at a lower price-to-earnings ratio than Papa John’s International, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

89.3% of Cracker Barrel Old Country Store shares are owned by institutional investors. Comparatively, 79.1% of Papa John’s International shares are owned by institutional investors. 1.0% of Cracker Barrel Old Country Store shares are owned by insiders. Comparatively, 27.7% of Papa John’s International shares are owned by 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.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.0%. Papa John’s International pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Cracker Barrel Old Country Store pays out 58.0% of its earnings in the form of a dividend. Papa John’s International pays out 28.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Papa John’s International has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of current ratings for Cracker Barrel Old Country Store and Papa John’s International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cracker Barrel Old Country Store 1 7 0 0 1.88
Papa John’s International 0 3 3 0 2.50

Cracker Barrel Old Country Store currently has a consensus price target of $163.88, indicating a potential upside of 3.38%. Papa John’s International has a consensus price target of $87.80, indicating a potential upside of 14.71%. Given Papa John’s International’s stronger consensus rating and higher possible upside, analysts clearly believe Papa John’s International is more favorable than Cracker Barrel Old Country Store.

Profitability

This table compares Cracker Barrel Old Country Store and Papa John’s International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cracker Barrel Old Country Store 6.80% 35.27% 13.12%
Papa John’s International 6.09% 11,469.18% 19.58%

Summary

Papa John’s International beats Cracker Barrel Old Country Store on 10 of the 16 factors compared between the two stocks.

About Cracker Barrel Old Country Store

Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods. Its restaurants offer home-style country cooking featuring of its own recipes. Its restaurants serve breakfast, lunch and dinner. Its breakfast items include juices, eggs, pancakes, grits, and a range of biscuit specialties. Its lunch and dinner items include country ham, chicken and dumplings, chicken fried chicken, meatloaf, fresh side items and specialty items, such as pinto beans and turnip greens.

About Papa John’s International

Papa John’s International, Inc. (Papa John’s) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark Papa John’s. The Company operates through five segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. As of December 25, 2016, there were 5,097 Papa John’s restaurants in operation, consisting of 744 Company-owned and 4,353 franchised restaurants operating domestically in all 50 states and in 45 countries and territories. It offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages.

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