FAT Brands (NASDAQ:FATBB) versus Biglari (NYSE:BH) Financial Contrast

Biglari (NYSE:BH) and FAT Brands (NASDAQ:FATBB) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Biglari and FAT Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biglari	0	0	0	0	N/A
FAT Brands	0	0	0	0	N/A

Institutional and Insider Ownership

74.3% of Biglari shares are owned by institutional investors. 71.4% of Biglari shares are owned by company insiders. Comparatively, 59.9% of FAT Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Biglari and FAT Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biglari	15.04%	9.18%	6.33%
FAT Brands	-18.28%	N/A	-6.67%

Earnings and Valuation

This table compares Biglari and FAT Brands’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biglari	$365.32 million	1.27	$54.95 million	$187.42	1.09
FAT Brands	$480.46 million	N/A	-$90.11 million	($6.17)	-0.97

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

Volatility and Risk

Biglari has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, FAT Brands has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Summary

Biglari beats FAT Brands on 7 of the 9 factors compared between the two stocks.

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. It owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. The company also engages in underwriting commercial trucking insurance; selling physical damage and non-trucking liability insurance to truckers; and providing property and casualty insurance. In addition, it operates oil and natural gas properties in the Gulf of Mexico; and publishes and sells magazines under the MAXIM brand name. Further, it licenses media products and services; and engages in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.

About FAT Brands

FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.