Bojangles’ (NASDAQ: BOJA) and Papa John’s International (NASDAQ:PZZA) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

91.3% of Bojangles’ shares are held by institutional investors. Comparatively, 83.8% of Papa John’s International shares are held by institutional investors. 55.3% of Bojangles’ shares are held by company insiders. Comparatively, 27.7% of Papa John’s International 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.

Risk and Volatility

Bojangles’ has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bojangles’ and Papa John’s International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bojangles’ $538.50 million 0.86 $79.81 million $0.95 13.21
Papa John’s International $1.75 billion 1.49 $198.59 million $2.87 24.94

Papa John’s International has higher revenue and earnings than Bojangles’. Bojangles’ is trading at a lower price-to-earnings ratio than Papa John’s International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bojangles’ and Papa John’s International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bojangles’ 6.70% 17.05% 6.47%
Papa John’s International 6.13% 919.82% 19.48%

Dividends

Papa John’s International pays an annual dividend of $0.90 per share and has a dividend yield of 1.3%. Bojangles’ does not pay a dividend. Papa John’s International pays out 31.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bojangles’ and Papa John’s International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bojangles’ 0 7 2 0 2.22
Papa John’s International 0 4 4 0 2.50

Bojangles’ presently has a consensus target price of $18.43, suggesting a potential upside of 46.84%. Papa John’s International has a consensus target price of $85.14, suggesting a potential upside of 18.93%. Given Bojangles”s higher probable upside, equities analysts plainly believe Bojangles’ is more favorable than Papa John’s International.

Summary

Papa John’s International beats Bojangles’ on 10 of the 16 factors compared between the two stocks.

About Bojangles’

Bojangles’, Inc. is a restaurant operator and franchisor. The Company offers food made from its Southern recipes. The Company’s menu includes its made-from-scratch, buttermilk biscuits baked fresh every 20 minutes; its fresh, never-frozen bone-in fried chicken; its fixin’s; its Bo-Smart menu featuring items, such as salads, grilled chicken sandwiches, roasted chicken bites and fat-free green beans; its freshly baked and delicious sweets menu, and its Legendary Iced Tea. The Company’s food is offered a la carte and in combos. The Company’s chicken, fixin’s, biscuits and Legendary Iced Tea may also be ordered in boxes or family meals, and larger combinations may be offered as tailgate specials or may be packaged in its Big Bo Box. The Company offers Southern style mac ‘n cheese made from two cheeses; fat-free green beans; cole slaw, and mashed potatoes with gravy. Its menu also features salads, sandwiches and its whole meat Roasted Chicken Bites.

About Papa John’s International

Papa John’s International, Inc. (Papa John’s) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark Papa John’s. The Company operates through five segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. As of December 25, 2016, there were 5,097 Papa John’s restaurants in operation, consisting of 744 Company-owned and 4,353 franchised restaurants operating domestically in all 50 states and in 45 countries and territories. It offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages.

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