Bob Evans Farms (NASDAQ: BOBE) and BJ’s Restaurants (NASDAQ:BJRI) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Volatility and Risk

Bob Evans Farms has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, BJ’s Restaurants has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Bob Evans Farms and BJ’s Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bob Evans Farms 19.49% 19.52% 7.55%
BJ’s Restaurants 3.82% 14.51% 5.71%

Institutional and Insider Ownership

76.9% of Bob Evans Farms shares are owned by institutional investors. Comparatively, 99.6% of BJ’s Restaurants shares are owned by institutional investors. 1.2% of Bob Evans Farms shares are owned by company insiders. Comparatively, 6.8% of BJ’s Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Bob Evans Farms pays an annual dividend of $1.36 per share and has a dividend yield of 1.8%. BJ’s Restaurants does not pay a dividend. Bob Evans Farms pays out 22.1% of its earnings in the form of a dividend. Bob Evans Farms has increased its dividend for 9 consecutive years.

Earnings & Valuation

This table compares Bob Evans Farms and BJ’s Restaurants’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bob Evans Farms $418.17 million 3.68 $64.75 million $6.16 12.54
BJ’s Restaurants $1.02 billion 0.63 $122.11 million $1.71 17.49

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Bob Evans Farms and BJ’s Restaurants, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bob Evans Farms 0 7 1 0 2.13
BJ’s Restaurants 2 7 1 0 1.90

Bob Evans Farms presently has a consensus target price of $75.92, indicating a potential downside of 1.73%. BJ’s Restaurants has a consensus target price of $39.00, indicating a potential upside of 30.43%. Given BJ’s Restaurants’ higher possible upside, analysts clearly believe BJ’s Restaurants is more favorable than Bob Evans Farms.

Summary

Bob Evans Farms beats BJ’s Restaurants on 9 of the 16 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 BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates restaurants. The Company segment includes casual dining company-owned restaurants. Each of its restaurants is operated either as a BJ’s Restaurant & Brewhouse, a BJ’s Restaurant & Brewery, a BJ’s Pizza & Grill or a BJ’s Grill restaurant. The Company’s restaurants offer craft beers and other beers, as well as a selection of appetizers, entrees, pastas, burgers and sandwiches, specialty salads, and desserts, including its warm pizza cookie dessert, the Pizookie. As of February 27, 2017, the Company owned and operated 189 restaurants located in 24 states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Washington.

Receive News & Ratings for Bob Evans Farms Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bob Evans Farms Inc. and related companies with MarketBeat.com's FREE daily email newsletter.