Sonic (NASDAQ:SONC) and Bravo Brio Restaurant Group (NASDAQ:BBRG) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Sonic and Bravo Brio Restaurant Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonic 0 11 1 0 2.08
Bravo Brio Restaurant Group 0 0 0 0 N/A

Sonic presently has a consensus target price of $37.00, indicating a potential downside of 14.92%. Given Sonic’s higher probable upside, analysts plainly believe Sonic is more favorable than Bravo Brio Restaurant Group.

Valuation & Earnings

This table compares Sonic and Bravo Brio Restaurant Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonic $423.59 million 3.66 $71.20 million $1.49 29.19
Bravo Brio Restaurant Group N/A N/A N/A N/A N/A

Sonic has higher revenue and earnings than Bravo Brio Restaurant Group.

Insider and Institutional Ownership

89.1% of Sonic shares are owned by institutional investors. Comparatively, 34.4% of Bravo Brio Restaurant Group shares are owned by institutional investors. 8.3% of Sonic shares are owned by company insiders. Comparatively, 7.5% of Bravo Brio Restaurant Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Sonic 16.81% -21.64% 10.39%
Bravo Brio Restaurant Group N/A N/A N/A

Dividends

Sonic pays an annual dividend of $0.64 per share and has a dividend yield of 1.5%. Bravo Brio Restaurant Group does not pay a dividend. Sonic pays out 43.0% of its earnings in the form of a dividend. Sonic has increased its dividend for 4 consecutive years.

Summary

Sonic beats Bravo Brio Restaurant Group on 9 of the 11 factors compared between the two stocks.

Sonic Company Profile

Sonic Corp., through its subsidiaries, operates and franchises a chain of drive-in restaurants in the United States. As of August 31, 2018, the company operated 3,606 Sonic Drive-Ins in 45 states, including 3,427 Drive-Ins owned and operated by franchisees; and 179 Drive-Ins owned and operated by the company. The company also owns and leases 162 properties; and sublease 48 properties to franchisees and other parties. Sonic Corp. was founded in 1953 and is headquartered in Oklahoma City, Oklahoma.

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.

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