Restaurant Brands International (NYSE: QSR) and Ruby Tuesday (NYSE:RT) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Earnings & Valuation

This table compares Restaurant Brands International and Ruby Tuesday’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Restaurant Brands International $4.15 billion 3.48 $615.60 million $1.44 42.16
Ruby Tuesday $951.97 million 0.16 -$106.14 million ($1.27) -1.91

Restaurant Brands International has higher revenue and earnings than Ruby Tuesday. Ruby Tuesday is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Restaurant Brands International and Ruby Tuesday, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Restaurant Brands International 0 4 12 0 2.75
Ruby Tuesday 0 0 0 0 N/A

Restaurant Brands International presently has a consensus price target of $69.21, indicating a potential upside of 14.01%. Given Restaurant Brands International’s higher probable upside, analysts plainly believe Restaurant Brands International is more favorable than Ruby Tuesday.

Insider and Institutional Ownership

78.4% of Restaurant Brands International shares are owned by institutional investors. Comparatively, 77.3% of Ruby Tuesday shares are owned by institutional investors. 3.1% of Restaurant Brands International shares are owned by insiders. Comparatively, 4.8% of Ruby Tuesday shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Restaurant Brands International pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. Ruby Tuesday does not pay a dividend. Restaurant Brands International pays out 55.6% of its earnings in the form of a dividend.

Profitability

This table compares Restaurant Brands International and Ruby Tuesday’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Restaurant Brands International 12.40% 23.53% 4.12%
Ruby Tuesday -8.36% -3.67% -1.56%

Summary

Restaurant Brands International beats Ruby Tuesday on 11 of the 13 factors compared between the two stocks.

About Restaurant Brands International

Restaurant Brands International Inc. is a quick service restaurant (QSR) company. The Company had over 20,000 restaurants in more than 100 countries and the United States territories, as of December 31, 2016. It operates through two segments: Tim Hortons (TH) and Burger King (BK). Tim Hortons restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others. Burger King restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. The Company operates coffee roasting facilities in Hamilton, Ontario and Rochester, New York. The Company sells its raw materials and supplies, including coffee, sugar, paper goods and other restaurant supplies to Tim Hortons restaurants.

About Ruby Tuesday

Ruby Tuesday, Inc. owns and operates Ruby Tuesday casual dining and Lime Fresh Mexican Grill (Lime Fresh) casual restaurants. The Company also franchises the Ruby Tuesday concept in selected domestic and international markets, and the Lime Fresh concept in selected domestic markets. Its segments include Ruby Tuesday concept and Lime Fresh concept. As of March 1, 2016, the Company operated 729 Ruby Tuesday restaurants in 44 states, 13 foreign countries, and Guam, and there were 16 Lime Fresh restaurants in two states. Of those restaurants, it owned and operated approximately 649 Ruby Tuesday restaurants and franchised over 80 Ruby Tuesday restaurants, which consisted of 28 domestic and 52 international restaurants. It also owned and operated over eight Lime Fresh restaurants and franchised eight Lime Fresh domestic restaurants. The Company’s corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic and Midwest of the United States.

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