Bravo Brio Restaurant Group (NASDAQ:BBRG) and Fiesta Restaurant Group (NASDAQ:FRGI) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Bravo Brio Restaurant Group and Fiesta Restaurant Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bravo Brio Restaurant Group 0 1 0 0 2.00
Fiesta Restaurant Group 0 0 2 0 3.00

Bravo Brio Restaurant Group currently has a consensus price target of $2.50, indicating a potential downside of 38.27%. Fiesta Restaurant Group has a consensus price target of $29.00, indicating a potential upside of 10.90%. Given Fiesta Restaurant Group’s stronger consensus rating and higher probable upside, analysts clearly believe Fiesta Restaurant Group is more favorable than Bravo Brio Restaurant Group.

Volatility and Risk

Bravo Brio Restaurant Group has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Fiesta Restaurant Group has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

34.4% of Bravo Brio Restaurant Group shares are held by institutional investors. Comparatively, 99.1% of Fiesta Restaurant Group shares are held by institutional investors. 7.5% of Bravo Brio Restaurant Group shares are held by insiders. Comparatively, 2.2% of Fiesta Restaurant Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Bravo Brio Restaurant Group and Fiesta Restaurant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bravo Brio Restaurant Group -3.86% -15.00% -2.55%
Fiesta Restaurant Group -0.80% 5.35% 3.04%

Valuation & Earnings

This table compares Bravo Brio Restaurant Group and Fiesta Restaurant Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bravo Brio Restaurant Group $407.61 million 0.15 -$9.76 million $0.22 18.41
Fiesta Restaurant Group $669.13 million 1.07 -$36.23 million $0.60 43.58

Bravo Brio Restaurant Group has higher earnings, but lower revenue than Fiesta Restaurant Group. Bravo Brio Restaurant Group is trading at a lower price-to-earnings ratio than Fiesta Restaurant Group, indicating that it is currently the more affordable of the two stocks.

Summary

Fiesta Restaurant Group beats Bravo Brio Restaurant Group on 11 of the 14 factors compared between the two stocks.

Bravo Brio Restaurant Group Company Profile

Bravo Brio Restaurant Group, Inc. owns and operates Italian restaurants in the United States. It operates full-service Italian restaurants under the BRAVO! Cucina Italiana brand name; Italian chophouse restaurants under the BRIO Tuscan Grille brand name; and full-service American-French bistro restaurant under the Bon Vie brand name. The company's restaurants primarily offer Italian food and wine. As of December 31, 2017, it operated 49 BRAVO! restaurants, 64 BRIO restaurants, and 1 Bon Vie restaurant in 32 states. The company was formerly known as Bravo Development, Inc. and changed its name to Bravo Brio Restaurant Group, Inc. in June 2010. Bravo Brio Restaurant Group, Inc. was incorporated in 1987 and is based in Columbus, Ohio.

Fiesta Restaurant Group Company Profile

Fiesta Restaurant Group, Inc., through its subsidiaries, owns, operates, and franchises fast-casual restaurants. It operates its fast-casual restaurants under the Pollo Tropical and Taco Cabana brands. The company's Pollo Tropical restaurants offer citrus marinated, fire-grilled chicken, and other freshly prepared tropical inspired menu items; and Taco Cabana restaurants provide Mexican inspired food made fresh by hand. As of December 31, 2017, it had 146 company owned Pollo Tropical restaurants, which include 137 in Florida and 9 in Atlanta, Georgia; 166 company owned Taco Cabana restaurants; and franchised 31 Pollo Tropical restaurants in Puerto Rico, Panama, Guyana, Bahamas, Venezuela, and Florida, as well as 7 franchised Taco Cabana restaurants in New Mexico and Texas. The company was incorporated in 2011 and is headquartered in Dallas, Texas.

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