Bloomin' Brands (NASDAQ: BLMN) and One Group Hospitality (NASDAQ:STKS) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Bloomin' Brands pays an annual dividend of $0.32 per share and has a dividend yield of 1.5%. One Group Hospitality does not pay a dividend. Bloomin' Brands pays out 41.6% of its earnings in the form of a dividend.
Bloomin' Brands has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, One Group Hospitality has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Valuation and Earnings
This table compares Bloomin' Brands and One Group Hospitality’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bloomin' Brands||$4.25 billion||0.44||$41.74 million||$0.77||26.92|
|One Group Hospitality||$72.41 million||0.79||-$16.68 million||($0.80)||-2.81|
Bloomin' Brands has higher revenue and earnings than One Group Hospitality. One Group Hospitality is trading at a lower price-to-earnings ratio than Bloomin' Brands, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
14.5% of One Group Hospitality shares are held by institutional investors. 7.0% of Bloomin' Brands shares are held by insiders. Comparatively, 35.9% of One Group Hospitality shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Bloomin' Brands and One Group Hospitality’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|One Group Hospitality||-25.48%||-68.30%||-7.44%|
This is a breakdown of recent ratings for Bloomin' Brands and One Group Hospitality, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Group Hospitality||0||0||0||0||N/A|
Bloomin' Brands presently has a consensus target price of $22.10, indicating a potential upside of 6.61%. Given Bloomin' Brands’ higher possible upside, analysts clearly believe Bloomin' Brands is more favorable than One Group Hospitality.
Bloomin' Brands beats One Group Hospitality on 9 of the 14 factors compared between the two stocks.
Bloomin' Brands Company Profile
Bloomin’ Brands, Inc. is a holding company. The Company owns and operates casual, upscale casual and fine dining restaurants. The Company operates through two segments: U.S. and International. The U.S. segment includes all brands operating in the United States. The International segment includes brands operating outside the United States. As of December 25, 2016, the Company had a portfolio of four restaurant concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. OSI Restaurant Partners, LLC (OSI) is the Company’s primary operating entity. New Private Restaurant Properties, LLC (PRP), an indirect subsidiary of the Company, leases the Company-owned restaurant properties to OSI’s subsidiaries. As of December 25, 2016, the Company owned and operated 1,276 restaurants and franchised 240 restaurants across 48 states, Puerto Rico, Guam and 20 countries.
One Group Hospitality Company Profile
The ONE Group Hospitality, Inc., formerly Committed Capital Acquisition Corporation, is a hospitality company. The Company develops, owns and operates restaurants and lounges, and provides food and beverage services for hospitality venues, including hotels, casinos and other locations across the globe. It operates through three segments: owned STK units (STKs), F&B hospitality management agreements (F&B), and Other concepts (Other). Its STKs segment consists of leased restaurant locations. Its F&B segment consists of management agreements, in which the Company operates the food and beverage services in hotels or casinos and could include an STK. Its Other segment includes owned non-STK leased locations. Its restaurant brand is STK, a multi-unit steakhouse concept with locations in metropolitan cities around the globe. Its F&B hospitality management services include developing, managing and operating restaurants, bars, rooftop lounges, pools, banqueting and catering facilities.
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