FAT Brands (NASDAQ:FATBB) & Biglari (NYSE:BH) Critical Analysis

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

Analyst Recommendations

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

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

Volatility & Risk

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

Valuation and Earnings

This table compares FAT Brands and Biglari’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FAT Brands	$480.46 million	N/A	-$90.11 million	($6.17)	-1.04
Biglari	$365.32 million	1.26	$54.95 million	$187.42	1.08

Biglari has lower revenue, but higher earnings 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FAT Brands	-18.28%	N/A	-6.55%
Biglari	15.04%	9.18%	6.33%

Institutional and Insider Ownership

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

Summary

Biglari beats FAT Brands on 8 of the 10 factors compared between the two stocks.

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.

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.