Cracker Barrel Old Country Store (NASDAQ: CBRL) and DineEquity (NYSE:DIN) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.2%. DineEquity pays an annual dividend of $3.88 per share and has a dividend yield of 9.6%. Cracker Barrel Old Country Store pays out 58.0% of its earnings in the form of a dividend. DineEquity pays out 86.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cracker Barrel Old Country Store has raised its dividend for 7 consecutive years and DineEquity has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cracker Barrel Old Country Store and DineEquity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cracker Barrel Old Country Store 1 7 0 0 1.88
DineEquity 0 4 3 0 2.43

Cracker Barrel Old Country Store currently has a consensus price target of $163.88, suggesting a potential upside of 8.66%. DineEquity has a consensus price target of $57.00, suggesting a potential upside of 40.78%. Given DineEquity’s stronger consensus rating and higher probable upside, analysts plainly believe DineEquity is more favorable than Cracker Barrel Old Country Store.

Volatility and Risk

Cracker Barrel Old Country Store has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, DineEquity has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Valuation and Earnings

This table compares Cracker Barrel Old Country Store and DineEquity’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cracker Barrel Old Country Store $2.93 billion 1.24 $391.90 million $8.27 18.24
DineEquity $621.56 million 1.17 $234.57 million $4.48 9.04

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

Institutional and Insider Ownership

87.4% of Cracker Barrel Old Country Store shares are held by institutional investors. Comparatively, 88.6% of DineEquity shares are held by institutional investors. 1.0% of Cracker Barrel Old Country Store shares are held by company insiders. Comparatively, 2.2% of DineEquity shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Cracker Barrel Old Country Store and DineEquity’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%
DineEquity 13.02% 38.34% 4.35%

Summary

Cracker Barrel Old Country Store beats DineEquity on 9 of the 17 factors compared between the two stocks.

Cracker Barrel Old Country Store Company Profile

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.

DineEquity Company Profile

DineEquity, Inc., through its subsidiaries, owns and franchises the Applebee’s Neighborhood Grill & Bar (Applebee’s) concept in the bar and grill segment within the casual dining category of the restaurant industry, and owns, franchises and operates the International House of Pancakes (IHOP) concept in the family dining category of the restaurant industry. It operates through four segments: Franchise operations, Rental operations, Company restaurant operations and Financing operations. As of December 31, 2016, it had 3,749 restaurants. Applebee’s menu features a selection of grill and bar fare, such as appetizers, bar snacks, burgers, classic entrees and lighter fare, as well as cocktails, beers and desserts. As of December 31, 2016, IHOP franchise and area license restaurants were located in all 50 states within the United States, in the District of Columbia, in three United States territories and in 10 countries outside of the United States.

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