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

Institutional & Insider Ownership

92.0% of DineEquity shares are held by institutional investors. Comparatively, 69.0% of shares of all “Restaurants & Bars” companies are held by institutional investors. 2.2% of DineEquity shares are held by company insiders. Comparatively, 20.6% 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.

Profitability

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

Net Margins Return on Equity Return on Assets
DineEquity 13.02% 38.34% 4.35%
DineEquity Competitors 1.77% 12.50% 1.76%

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
DineEquity $621.56 million $234.57 million 9.77
DineEquity Competitors $2.04 billion $349.24 million -2.74

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

Analyst Recommendations

This is a summary of current ratings and target prices for DineEquity and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DineEquity 0 4 3 0 2.43
DineEquity Competitors 272 1558 2152 73 2.50

DineEquity currently has a consensus price target of $57.00, indicating a potential upside of 30.20%. As a group, “Restaurants & Bars” companies have a potential upside of 9.04%. Given DineEquity’s higher possible upside, equities analysts plainly believe DineEquity is more favorable than its competitors.

Volatility and Risk

DineEquity has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500. Comparatively, DineEquity’s competitors have a beta of 0.67, indicating that their average share price is 33% less volatile than the S&P 500.

Dividends

DineEquity pays an annual dividend of $3.88 per share and has a dividend yield of 8.9%. 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. As a group, “Restaurants & Bars” companies pay a dividend yield of 3.0% and pay out 61.0% of their earnings in the form of a dividend. DineEquity has increased its dividend for 2 consecutive years.

Summary

DineEquity competitors beat DineEquity on 8 of the 15 factors compared.

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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