Bob Evans Farms (NASDAQ: BOBE) and Buffalo Wild Wings (NASDAQ:BWLD) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitabiliy and analyst recommendations.

Risk & Volatility

Bob Evans Farms has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Buffalo Wild Wings has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Dividends

Bob Evans Farms pays an annual dividend of $1.36 per share and has a dividend yield of 2.0%. Buffalo Wild Wings does not pay a dividend. Bob Evans Farms pays out 21.7% of its earnings in the form of a dividend. Buffalo Wild Wings has increased its dividend for 9 consecutive years.

Earnings & Valuation

This table compares Bob Evans Farms and Buffalo Wild Wings’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bob Evans Farms $394.84 million 3.40 $71.50 million $6.27 10.73
Buffalo Wild Wings $2.02 billion 0.86 $261.12 million $3.90 28.76

Buffalo Wild Wings has higher revenue and earnings than Bob Evans Farms. Bob Evans Farms is trading at a lower price-to-earnings ratio than Buffalo Wild Wings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bob Evans Farms and Buffalo Wild Wings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bob Evans Farms 15.15% 19.58% 6.82%
Buffalo Wild Wings 3.39% 17.14% 7.49%

Analyst Recommendations

This is a breakdown of current recommendations for Bob Evans Farms and Buffalo Wild Wings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bob Evans Farms 0 3 3 0 2.50
Buffalo Wild Wings 1 18 5 0 2.17

Bob Evans Farms currently has a consensus price target of $75.68, suggesting a potential upside of 12.47%. Buffalo Wild Wings has a consensus price target of $140.20, suggesting a potential upside of 25.01%. Given Buffalo Wild Wings’ higher probable upside, analysts plainly believe Buffalo Wild Wings is more favorable than Bob Evans Farms.

Insider and Institutional Ownership

78.3% of Bob Evans Farms shares are held by institutional investors. Comparatively, 94.5% of Buffalo Wild Wings shares are held by institutional investors. 1.2% of Bob Evans Farms shares are held by company insiders. Comparatively, 1.2% of Buffalo Wild Wings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Buffalo Wild Wings beats Bob Evans Farms on 10 of the 17 factors compared between the two stocks.

About Bob Evans Farms

Bob Evans Farms, Inc. (Bob Evans) is a producer and distributor of refrigerated potato, pasta and vegetable-based side dishes, pork sausage, and a variety of refrigerated and frozen food items under the Bob Evans and Owens or Country Creek brand names. The Company’s food products are distributed to customers throughout the United States. Additionally, the Company manufactures and sells similar products to foodservice customers, restaurants and food sellers. The Company operates through BEF Foods segment. The BEF Foods segment offers a range of wholesome food products to retail and foodservice customers. The Company produces food products in its four manufacturing facilities. It produces sausage products at its plants located in Hillsdale, Michigan, and Xenia, Ohio.

About Buffalo Wild Wings

Buffalo Wild Wings, Inc. is the owner, operator and franchisor of restaurants. As of December 25, 2016, the Company’s made-to-order menu items included 16 sauces and five seasonings, ranging from Sweet BBQ to Blazin. The Company’s restaurants offer 20 to 40 domestic and imported beers on tap, including craft brews, and a selection of bottled beers, wines and liquor. As of December 25, 2016, the Company had company-owned or franchised restaurants in all 50 states and two Canadian provinces. Its franchised restaurants also operate in Mexico, Saudi Arabia, Philippines, Panama and the United Arab Emirates. The Company operates Buffalo Wild Wings, R Taco and PizzaRev restaurants, as well as sells Buffalo Wild Wings and R Taco restaurant franchises. In addition to traditional and boneless chicken wings, the Company’s menu features a range of food items, including sharables, hamburgers, sandwiches, wraps, Buffalito soft tacos, and salads.

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