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

Profitability

This table compares DineEquity and its rivals’ 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 1.82% 12.53% 1.77%

Insider and Institutional Ownership

92.0% of DineEquity shares are owned by institutional investors. Comparatively, 68.8% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 2.2% of DineEquity shares are owned by insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for DineEquity and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DineEquity 0 4 3 0 2.43
DineEquity Competitors 281 1577 2165 73 2.50

DineEquity presently has a consensus price target of $57.00, suggesting a potential upside of 22.27%. As a group, “Restaurants & Bars” companies have a potential upside of 11.82%. Given DineEquity’s higher probable upside, analysts plainly believe DineEquity is more favorable than its rivals.

Dividends

DineEquity pays an annual dividend of $3.88 per share and has a dividend yield of 8.3%. 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.

Earnings and Valuation

This table compares DineEquity and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
DineEquity $621.56 million $234.57 million 10.41
DineEquity Competitors $2.04 billion $349.42 million -3.38

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

Risk & Volatility

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

Summary

DineEquity rivals 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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