Bloomin’ Brands (NASDAQ:BLMN – Get Free Report) and Dutch Bros (NYSE:BROS – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Profitability
This table compares Bloomin’ Brands and Dutch Bros’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bloomin’ Brands | 0.70% | 28.95% | 3.47% |
| Dutch Bros | 4.91% | 10.01% | 2.95% |
Valuation and Earnings
This table compares Bloomin’ Brands and Dutch Bros”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bloomin’ Brands | $3.96 billion | 0.23 | $8.24 million | $0.31 | 34.10 |
| Dutch Bros | $1.64 billion | 4.58 | $79.84 million | $0.72 | 59.61 |
Dutch Bros has lower revenue, but higher earnings than Bloomin’ Brands. Bloomin’ Brands is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
85.5% of Dutch Bros shares are held by institutional investors. 1.2% of Bloomin’ Brands shares are held by company insiders. Comparatively, 38.9% of Dutch Bros shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Bloomin’ Brands and Dutch Bros, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bloomin’ Brands | 0 | 11 | 0 | 0 | 2.00 |
| Dutch Bros | 0 | 4 | 20 | 1 | 2.88 |
Bloomin’ Brands currently has a consensus target price of $10.90, suggesting a potential upside of 3.08%. Dutch Bros has a consensus target price of $66.08, suggesting a potential upside of 53.97%. Given Dutch Bros’ stronger consensus rating and higher probable upside, analysts plainly believe Dutch Bros is more favorable than Bloomin’ Brands.
Risk and Volatility
Bloomin’ Brands has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.31, suggesting that its share price is 131% more volatile than the S&P 500.
Summary
Dutch Bros beats Bloomin’ Brands on 12 of the 15 factors compared between the two stocks.
About Bloomin’ Brands
Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.
About Dutch Bros
Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.
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