Critical Contrast: The Habit Restaurants (HABT) vs. Its Peers
The Habit Restaurants (NASDAQ: HABT) is one of 44 public companies in the “Restaurants & Bars” industry, but how does it contrast to its competitors? We will compare The Habit Restaurants to related companies based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, risk and institutional ownership.
This table compares The Habit Restaurants and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Habit Restaurants||1.64%||4.97%||2.16%|
|The Habit Restaurants Competitors||1.82%||12.53%||1.77%|
This is a summary of current ratings for The Habit Restaurants and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Habit Restaurants||0||3||4||0||2.57|
|The Habit Restaurants Competitors||281||1577||2168||73||2.50|
The Habit Restaurants presently has a consensus target price of $17.93, indicating a potential upside of 46.96%. As a group, “Restaurants & Bars” companies have a potential upside of 11.70%. Given The Habit Restaurants’ stronger consensus rating and higher possible upside, equities analysts clearly believe The Habit Restaurants is more favorable than its competitors.
Earnings & Valuation
This table compares The Habit Restaurants and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|The Habit Restaurants||$307.71 million||$29.44 million||48.80|
|The Habit Restaurants Competitors||$2.04 billion||$349.42 million||-3.61|
The Habit Restaurants’ competitors have higher revenue and earnings than The Habit Restaurants. The Habit Restaurants 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.
Volatility & Risk
The Habit Restaurants has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, The Habit Restaurants’ competitors have a beta of 0.67, indicating that their average stock price is 33% less volatile than the S&P 500.
Institutional & Insider Ownership
73.8% of The Habit Restaurants shares are held by institutional investors. Comparatively, 68.8% of shares of all “Restaurants & Bars” companies are held by institutional investors. 16.1% of The Habit Restaurants shares are held by insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are held 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.
The Habit Restaurants beats its competitors on 7 of the 13 factors compared.
About The Habit Restaurants
The Habit Restaurants, Inc. (Habit Burger Grill) is a fast casual restaurant company. The Company is engaged in preparing made-to-order char-grilled burgers and sandwiches featuring tri-tip steak, grilled chicken and sushi-grade albacore tuna cooked over an open flame. In addition, it offers sides, shakes and malts. The Company prepares its burgers with char-grilled preparation, topped with caramelized onions, melted cheese, lettuce and tomatoes. It operates a range of restaurant formats, including end-cap, free-standing, inline, end-cap drive-thru and traditional stand-alone drive-in, primarily within suburban shopping centers and retail settings. As of December 27, 2016, the Company had 172 locations in 15 markets in 10 states and the United Arab Emirates, including franchised/licensed locations (excluding six licensed locations in Santa Barbara County, California).
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