Restaurant Brands International (NYSE: QSR) and Biglari Holdings (NYSE:BH) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Dividends

Restaurant Brands International pays an annual dividend of $0.76 per share and has a dividend yield of 1.3%. Biglari Holdings does not pay a dividend. Restaurant Brands International pays out 52.8% of its earnings in the form of a dividend.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Restaurant Brands International $4.32 billion 3.26 $1.91 billion $1.44 41.42
Biglari Holdings $839.07 million 0.79 $43.14 million $12.92 24.83

Restaurant Brands International has higher revenue and earnings than Biglari Holdings. Biglari Holdings 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.

Profitability

This table compares Restaurant Brands International and Biglari Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Restaurant Brands International 12.66% 22.71% 3.99%
Biglari Holdings 1.92% 3.15% 1.52%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Restaurant Brands International and Biglari Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Restaurant Brands International 0 4 11 0 2.73
Biglari Holdings 0 1 0 0 2.00

Restaurant Brands International currently has a consensus target price of $63.07, indicating a potential upside of 5.74%. Given Restaurant Brands International’s stronger consensus rating and higher possible upside, analysts plainly believe Restaurant Brands International is more favorable than Biglari Holdings.

Insider and Institutional Ownership

75.5% of Restaurant Brands International shares are owned by institutional investors. Comparatively, 91.1% of Biglari Holdings shares are owned by institutional investors. 4.2% of Restaurant Brands International shares are owned by insiders. Comparatively, 51.2% of Biglari Holdings shares are owned by 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.

Volatility & Risk

Restaurant Brands International has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Biglari Holdings has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Summary

Restaurant Brands International beats Biglari Holdings on 12 of the 16 factors compared between the two stocks.

Restaurant Brands International Company Profile

Restaurant Brands International Inc. is a quick service restaurant (QSR) company. The Company had over 20,000 restaurants in more than 100 countries and the United States territories, as of December 31, 2016. It operates through two segments: Tim Hortons (TH) and Burger King (BK). Tim Hortons restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others. Burger King restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. The Company operates coffee roasting facilities in Hamilton, Ontario and Rochester, New York. The Company sells its raw materials and supplies, including coffee, sugar, paper goods and other restaurant supplies to Tim Hortons restaurants.

Biglari Holdings Company Profile

Biglari Holdings Inc. is a holding company owning subsidiaries engaged in various business activities, including media, property and casualty insurance, and restaurants The Company’s segments include Restaurant Operations, First Guard, Maxim, Other and Corporate. The Company’s restaurant operations’ activities are conducted through approximately two restaurant concepts operated by subsidiaries Steak n Shake Inc. (Steak n Shake) and Western Sizzlin Corporation (Western). Steak n Shake is engaged in the ownership, operation and franchising of Steak n Shake restaurants. Western is engaged primarily in the franchising of restaurants. The Company’s insurance business consists of First Guard Insurance Company and its agency, 1st Guard Corporation. First Guard is a direct underwriter of commercial trucking insurance, selling physical damage and non-trucking liability insurance to truckers. Its media business consists of Maxim. Maxim’s business lies principally in media and licensing.

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