Analyzing Portillo’s (PTLO) & Its Competitors

Portillo’s (NASDAQ:PTLO) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its rivals? We will compare Portillo’s to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

98.3% of Portillo’s shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 6.3% of Portillo’s shares are held by insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Portillo’s has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Portillo’s’ rivals have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Profitability

This table compares Portillo’s and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Portillo’s	1.85%	2.78%	0.86%
Portillo’s Competitors	2.41%	-40.04%	2.14%

Earnings & Valuation

This table compares Portillo’s and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Portillo’s	$732.07 million	$19.34 million	39.00
Portillo’s Competitors	$3.43 billion	$250.20 million	-158.98

Portillo’s’ rivals have higher revenue and earnings than Portillo’s. Portillo’s is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Portillo’s and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portillo’s	1	8	2	0	2.09
Portillo’s Competitors	3798	17241	25542	902	2.50

Portillo’s currently has a consensus target price of $5.66, indicating a potential downside of 19.43%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 57.57%. Given Portillo’s’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Portillo’s has less favorable growth aspects than its rivals.

Summary

Portillo’s rivals beat Portillo’s on 9 of the 13 factors compared.

Portillo’s Company Profile

Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.