Ruby Tuesday (NYSE: RT) is one of 44 public companies in the “Restaurants & Bars” industry, but how does it compare to its competitors? We will compare Ruby Tuesday to similar businesses based off the strength of its valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Insider & Institutional Ownership

76.1% of Ruby Tuesday shares are held by institutional investors. Comparatively, 70.6% of shares of all “Restaurants & Bars” companies are held by institutional investors. 4.8% of Ruby Tuesday shares are held by company insiders. Comparatively, 20.2% of shares of all “Restaurants & Bars” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Ruby Tuesday and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ruby Tuesday $951.97 million $29.49 million -1.20
Ruby Tuesday Competitors $2.03 billion $348.56 million -5.74

Ruby Tuesday’s competitors have higher revenue and earnings than Ruby Tuesday. Ruby Tuesday is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Ruby Tuesday and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruby Tuesday 0 0 0 0 N/A
Ruby Tuesday Competitors 362 1687 2169 82 2.46

All “Restaurants & Bars” companies have a potential upside of 12.94%. Given Ruby Tuesday’s competitors higher possible upside, analysts plainly believe Ruby Tuesday has less favorable growth aspects than its competitors.

Risk and Volatility

Ruby Tuesday has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Ruby Tuesday’s competitors have a beta of 0.66, suggesting that their average share price is 34% less volatile than the S&P 500.

Profitability

This table compares Ruby Tuesday and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruby Tuesday -11.15% -5.30% -2.30%
Ruby Tuesday Competitors 1.52% 19.28% 1.61%

Summary

Ruby Tuesday competitors beat Ruby Tuesday on 8 of the 9 factors compared.

About Ruby Tuesday

Ruby Tuesday, Inc. owns and operates Ruby Tuesday casual dining and Lime Fresh Mexican Grill (Lime Fresh) casual restaurants. The Company also franchises the Ruby Tuesday concept in selected domestic and international markets, and the Lime Fresh concept in selected domestic markets. Its segments include Ruby Tuesday concept and Lime Fresh concept. As of March 1, 2016, the Company operated 729 Ruby Tuesday restaurants in 44 states, 13 foreign countries, and Guam, and there were 16 Lime Fresh restaurants in two states. Of those restaurants, it owned and operated approximately 649 Ruby Tuesday restaurants and franchised over 80 Ruby Tuesday restaurants, which consisted of 28 domestic and 52 international restaurants. It also owned and operated over eight Lime Fresh restaurants and franchised eight Lime Fresh domestic restaurants. The Company’s corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic and Midwest of the United States.

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