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

Profitability

This table compares Luby’s and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luby’s -6.96% -4.97% -3.16%
Luby’s Competitors 1.70% 19.16% 1.56%

Risk and Volatility

Luby’s has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Luby’s’ competitors have a beta of 0.66, indicating that their average stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Luby’s and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luby’s 0 0 0 0 N/A
Luby’s Competitors 364 1688 2170 82 2.46

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

Insider and Institutional Ownership

42.8% of Luby’s shares are owned by institutional investors. Comparatively, 70.6% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 35.2% of Luby’s shares are owned by insiders. Comparatively, 20.2% of shares of all “Restaurants & Bars” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Luby’s and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Luby’s $387.17 million $13.97 million -2.83
Luby’s Competitors $2.03 billion $348.56 million -5.74

Luby’s’ competitors have higher revenue and earnings than Luby’s. Luby’s 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.

Summary

Luby’s competitors beat Luby’s on 8 of the 9 factors compared.

Luby’s Company Profile

Luby’s, Inc., is a multi-branded company operating in the restaurant industry and in the contract food services industry. The Company is managed through three segments: Company-owned restaurants, franchise operations, and Culinary Contract Services (CSS). The company-owned restaurants brands are Luby’s Cafeteria, Fuddruckers, and Cheeseburger in Paradise with a couple of non-core restaurant locations under other brand names. As of August 31, 2016, the Company owned and operated 175 restaurants, with 127 in Texas and the remainder in other states. The Company offers franchises for the Fuddruckers brand. As of August 31, 2016, the number of franchised restaurants were 113. Culinary Contract Services consists of contract arrangements to manage food services for clients operating in three lines of business: healthcare, higher education, and corporate dining. As of August 31, 2016, the Company had 24 Culinary Contract Services contracts.

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