Head-To-Head Review: Intergroup (NASDAQ:INTG) vs. Brinker International (NYSE:EAT)

Intergroup (NASDAQ:INTG) and Brinker International (NYSE:EAT) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Intergroup and Brinker International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intergroup	0	1	0	0	2.00
Brinker International	0	5	16	2	2.87

Brinker International has a consensus target price of $249.80, indicating a potential upside of 20.54%. Given Brinker International’s stronger consensus rating and higher possible upside, analysts plainly believe Brinker International is more favorable than Intergroup.

Risk and Volatility

Intergroup has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Institutional & Insider Ownership

3.4% of Intergroup shares are held by institutional investors. 73.8% of Intergroup shares are held by company insiders. Comparatively, 1.2% of Brinker International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Intergroup and Brinker International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intergroup	2.22%	-1.43%	1.60%
Brinker International	8.44%	125.65%	18.42%

Valuation and Earnings

This table compares Intergroup and Brinker International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intergroup	$73.95 million	1.12	$1.64 million	$0.71	54.36
Brinker International	$5.81 billion	1.48	$487.00 million	$11.36	18.24

Brinker International has higher revenue and earnings than Intergroup. Brinker International is trading at a lower price-to-earnings ratio than Intergroup, indicating that it is currently the more affordable of the two stocks.

Summary

Brinker International beats Intergroup on 12 of the 15 factors compared between the two stocks.

About Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.