Biglari (NYSE:BH.A – Get Free Report) and Portillo’s (NASDAQ:PTLO – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Profitability
This table compares Biglari and Portillo’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Biglari | N/A | N/A | N/A |
| Portillo’s | 2.12% | 3.17% | 0.98% |
Valuation & Earnings
This table compares Biglari and Portillo’s”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Biglari | $395.26 million | 11.53 | -$166.62 million | ($72.76) | -27.35 |
| Portillo’s | $732.07 million | 0.49 | $19.34 million | $0.21 | 22.57 |
Portillo’s has higher revenue and earnings than Biglari. Biglari is trading at a lower price-to-earnings ratio than Portillo’s, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Biglari has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Portillo’s has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Biglari and Portillo’s, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Biglari | 0 | 0 | 0 | 0 | 0.00 |
| Portillo’s | 1 | 10 | 2 | 0 | 2.08 |
Portillo’s has a consensus target price of $7.02, indicating a potential upside of 48.16%. Given Portillo’s’ stronger consensus rating and higher probable upside, analysts clearly believe Portillo’s is more favorable than Biglari.
Institutional & Insider Ownership
7.7% of Biglari shares are owned by institutional investors. Comparatively, 98.3% of Portillo’s shares are owned by institutional investors. 70.9% of Biglari shares are owned by company insiders. Comparatively, 6.3% of Portillo’s shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Portillo’s beats Biglari on 12 of the 14 factors compared between the two stocks.
About Biglari
Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2019, it operated 368 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 48 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers; and operates oil and natural gas properties offshore in the Gulf of Mexico. In addition, it publishes and sells magazines, and related publishing products under the MAXIM and Maxim brand name; and licenses media products and services, as well as is involved in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.
About Portillo’s
Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.
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