Bloomin’ Brands (NASDAQ: BLMN) and Papa John’s International (NASDAQ:PZZA) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Volatility & Risk
Bloomin’ Brands has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.
This table compares Bloomin’ Brands and Papa John’s International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Papa John’s International||6.12%||4,321.08%||19.07%|
Institutional & Insider Ownership
88.3% of Papa John’s International shares are owned by institutional investors. 7.0% of Bloomin’ Brands shares are owned by insiders. Comparatively, 27.7% of Papa John’s International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Bloomin’ Brands pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Papa John’s International pays an annual dividend of $0.90 per share and has a dividend yield of 1.5%. Bloomin’ Brands pays out 41.6% of its earnings in the form of a dividend. Papa John’s International pays out 31.0% 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.
Earnings & Valuation
This table compares Bloomin’ Brands and Papa John’s International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Bloomin’ Brands||$4.25 billion||0.36||$41.74 million||$0.77||22.05|
|Papa John’s International||$1.71 billion||1.22||$102.82 million||$2.90||20.53|
Papa John’s International has higher revenue, but lower earnings than Bloomin’ Brands. Papa John’s International is trading at a lower price-to-earnings ratio than Bloomin’ Brands, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Bloomin’ Brands and Papa John’s International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Papa John’s International||0||6||3||0||2.33|
Bloomin’ Brands presently has a consensus target price of $21.00, indicating a potential upside of 23.67%. Papa John’s International has a consensus target price of $79.25, indicating a potential upside of 33.13%. Given Papa John’s International’s stronger consensus rating and higher probable upside, analysts clearly believe Papa John’s International is more favorable than Bloomin’ Brands.
Papa John’s International beats Bloomin’ Brands on 12 of the 15 factors compared between the two stocks.
About Bloomin’ Brands
Bloomin’ Brands, Inc. is a holding company. The Company owns and operates casual, upscale casual and fine dining restaurants. The Company operates through two segments: U.S. and International. The U.S. segment includes all brands operating in the United States. The International segment includes brands operating outside the United States. As of December 25, 2016, the Company had a portfolio of four restaurant concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. OSI Restaurant Partners, LLC (OSI) is the Company’s primary operating entity. New Private Restaurant Properties, LLC (PRP), an indirect subsidiary of the Company, leases the Company-owned restaurant properties to OSI’s subsidiaries. As of December 25, 2016, the Company owned and operated 1,276 restaurants and franchised 240 restaurants across 48 states, Puerto Rico, Guam and 20 countries.
About Papa John’s International
Papa John’s International, Inc. (Papa John’s) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark Papa John’s. The Company operates through five segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. As of December 25, 2016, there were 5,097 Papa John’s restaurants in operation, consisting of 744 Company-owned and 4,353 franchised restaurants operating domestically in all 50 states and in 45 countries and territories. It offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages.
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