Restaurant Brands International (NYSE:QSR) and Monarch Casino & Resort (NASDAQ:MCRI) Head to Head Survey

Monarch Casino & Resort (NASDAQ:MCRI) and Restaurant Brands International (NYSE:QSR) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

62.4% of Monarch Casino & Resort shares are held by institutional investors. Comparatively, 82.3% of Restaurant Brands International shares are held by institutional investors. 26.3% of Monarch Casino & Resort shares are held by company insiders. Comparatively, 1.2% of Restaurant Brands International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Monarch Casino & Resort pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Restaurant Brands International pays an annual dividend of $2.60 per share and has a dividend yield of 3.6%. Monarch Casino & Resort pays out 19.0% of its earnings in the form of a dividend. Restaurant Brands International pays out 69.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Restaurant Brands International has raised its dividend for 10 consecutive years. Restaurant Brands International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Monarch Casino & Resort has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Profitability

This table compares Monarch Casino & Resort and Restaurant Brands International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monarch Casino & Resort	20.35%	20.60%	15.79%
Restaurant Brands International	15.35%	33.89%	7.11%

Analyst Ratings

This is a summary of recent ratings for Monarch Casino & Resort and Restaurant Brands International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monarch Casino & Resort	0	4	2	1	2.57
Restaurant Brands International	0	9	16	0	2.64

Monarch Casino & Resort currently has a consensus target price of $123.40, indicating a potential upside of 11.63%. Restaurant Brands International has a consensus target price of $83.92, indicating a potential upside of 15.86%. Given Restaurant Brands International’s stronger consensus rating and higher probable upside, analysts plainly believe Restaurant Brands International is more favorable than Monarch Casino & Resort.

Valuation and Earnings

This table compares Monarch Casino & Resort and Restaurant Brands International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monarch Casino & Resort	$545.12 million	3.63	$101.39 million	$6.31	17.52
Restaurant Brands International	$9.43 billion	2.68	$776.00 million	$3.72	19.47

Restaurant Brands International has higher revenue and earnings than Monarch Casino & Resort. Monarch Casino & Resort is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.

About Monarch Casino & Resort

Monarch Casino & Resort, Inc. engages in the ownership and operation of the Atlantis Casino Resort Spa, a hotel and casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk, Colorado. The company was founded in 1993 and is headquartered in Reno, NV.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.