Comparing Biglari Holdings (BH) and Its Peers

Biglari Holdings (NYSE: BH) is one of 43 public companies in the “Restaurants & Bars” industry, but how does it compare to its peers? We will compare Biglari Holdings to related companies based on the strength of its institutional ownership, valuation, dividends, analyst recommendations, profitability, earnings and risk.

Earnings & Valuation

This table compares Biglari Holdings and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Biglari Holdings $850.08 million $99.45 million 8.27
Biglari Holdings Competitors $1.87 billion $168.08 million 256.65

Biglari Holdings’ peers have higher revenue and earnings than Biglari Holdings. Biglari Holdings is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and target prices for Biglari Holdings and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Biglari Holdings 0 1 0 0 2.00
Biglari Holdings Competitors 283 1606 2189 74 2.49

As a group, “Restaurants & Bars” companies have a potential upside of 12.10%. Given Biglari Holdings’ peers stronger consensus rating and higher possible upside, analysts clearly believe Biglari Holdings has less favorable growth aspects than its peers.

Profitability

This table compares Biglari Holdings and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Biglari Holdings 6.16% 9.84% 4.84%
Biglari Holdings Competitors -0.25% 95.58% 1.49%

Volatility and Risk

Biglari Holdings has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Biglari Holdings’ peers have a beta of 0.64, indicating that their average share price is 36% less volatile than the S&P 500.

Institutional & Insider Ownership

88.7% of Biglari Holdings shares are owned by institutional investors. Comparatively, 68.7% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 51.2% of Biglari Holdings shares are owned by company insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Biglari Holdings peers beat Biglari Holdings on 9 of the 13 factors compared.

About Biglari Holdings

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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