Analyzing BBQ (NASDAQ:BBQ) & BJ’s Restaurants (NASDAQ:BJRI)

BBQ (NASDAQ:BBQ) and BJ’s Restaurants (NASDAQ:BJRI) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Profitability

This table compares BBQ and BJ’s Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BBQ 9.22% 8.21% 1.98%
BJ’s Restaurants -2.36% -7.72% -2.28%

Risk & Volatility

BBQ has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, BJ’s Restaurants has a beta of 2.29, suggesting that its share price is 129% more volatile than the S&P 500.

Earnings and Valuation

This table compares BBQ and BJ’s Restaurants’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BBQ $121.44 million 1.43 $4.95 million N/A N/A
BJ’s Restaurants $778.51 million 1.25 -$57.88 million ($2.45) -17.11

BBQ has higher earnings, but lower revenue than BJ’s Restaurants.

Institutional & Insider Ownership

72.2% of BBQ shares are held by institutional investors. 43.8% of BBQ shares are held by insiders. Comparatively, 3.6% of BJ’s Restaurants shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BBQ and BJ’s Restaurants, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBQ 0 0 1 0 3.00
BJ’s Restaurants 0 3 5 0 2.63

BBQ presently has a consensus target price of $25.00, suggesting a potential upside of 48.81%. BJ’s Restaurants has a consensus target price of $55.33, suggesting a potential upside of 31.97%. Given BBQ’s stronger consensus rating and higher possible upside, equities analysts plainly believe BBQ is more favorable than BJ’s Restaurants.

Summary

BBQ beats BJ’s Restaurants on 10 of the 13 factors compared between the two stocks.

About BBQ

BBQ Holdings, Inc. engages in the ownership and operation of franchise restaurants. It offers authentic hickory-smoked and off the-grill barbecue favorites, chopped pork, country-roasted chicken, and signature sandwiches and salads. The company was founded on March 29, 2019 and is headquartered in Minnetonka, MN.

About BJ’s Restaurants

BJ’s Restaurants, Inc. engages in the ownership and operation of casual dining restaurants. The firm operates BJ’s Restaurant and Brewery, BJ’s Restaurant & Brewhouse, BJ’s Pizza and Grill or BJ’s Grill. It offers pizzas, appetizers, specialty salads, soups, pastas, sandwiches, entrĂ©es, desserts, and proprietary craft beers. The company was founded in 1978 and is headquartered in Huntington Beach, CA.

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