Contrasting Sweetgreen (NYSE:SG) & BurgerFi International (NASDAQ:BFI)

Sweetgreen (NYSE:SG) and BurgerFi International (NASDAQ:BFI) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Earnings and Valuation

This table compares Sweetgreen and BurgerFi International’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sweetgreen	$584.04 million	4.01	-$113.38 million	($1.00)	-20.73
BurgerFi International	$170.10 million	0.06	-$30.71 million	($1.22)	-0.33

BurgerFi International has lower revenue, but higher earnings than Sweetgreen. Sweetgreen is trading at a lower price-to-earnings ratio than BurgerFi International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sweetgreen and BurgerFi International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sweetgreen	-19.41%	-21.58%	-12.36%
BurgerFi International	-18.05%	-34.41%	-8.81%

Insider and Institutional Ownership

95.8% of Sweetgreen shares are held by institutional investors. Comparatively, 15.1% of BurgerFi International shares are held by institutional investors. 22.0% of Sweetgreen shares are held by company insiders. Comparatively, 21.8% of BurgerFi International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Sweetgreen has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, BurgerFi International has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sweetgreen and BurgerFi International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sweetgreen	1	2	5	0	2.50
BurgerFi International	0	0	1	0	3.00

Sweetgreen currently has a consensus price target of $20.50, suggesting a potential downside of 2.47%. BurgerFi International has a consensus price target of $4.00, suggesting a potential upside of 866.18%. Given BurgerFi International’s stronger consensus rating and higher possible upside, analysts plainly believe BurgerFi International is more favorable than Sweetgreen.

Summary

Sweetgreen beats BurgerFi International on 8 of the 13 factors compared between the two stocks.

About Sweetgreen

Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.

About BurgerFi International

BurgerFi International, Inc., together with its subsidiaries, owns and franchises fast-casual and premium-casual dining restaurants. Its restaurants offer burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer, wine, pizza, coal fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. The company was formerly known as Opes Acquisition Corp. and changed its name to BurgerFi International, Inc. in December 2020. The company was founded in 2011 and is headquartered in Fort Lauderdale, Florida.