Diversified Restaurant Holdings (NASDAQ: SAUC) is one of 44 publicly-traded companies in the “Restaurants & Bars” industry, but how does it compare to its rivals? We will compare Diversified Restaurant Holdings to related businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.
Institutional and Insider Ownership
11.1% of Diversified Restaurant Holdings shares are held by institutional investors. Comparatively, 69.0% of shares of all “Restaurants & Bars” companies are held by institutional investors. 49.6% of Diversified Restaurant Holdings shares are held by insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Diversified Restaurant Holdings and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diversified Restaurant Holdings||-3.39%||-60.83%||-0.51%|
|Diversified Restaurant Holdings Competitors||1.77%||12.50%||1.76%|
This is a summary of current ratings and target prices for Diversified Restaurant Holdings and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diversified Restaurant Holdings||0||0||1||0||3.00|
|Diversified Restaurant Holdings Competitors||272||1551||2144||73||2.50|
Diversified Restaurant Holdings currently has a consensus price target of $3.50, indicating a potential upside of 84.21%. As a group, “Restaurants & Bars” companies have a potential upside of 10.52%. Given Diversified Restaurant Holdings’ stronger consensus rating and higher probable upside, research analysts plainly believe Diversified Restaurant Holdings is more favorable than its rivals.
Valuation and Earnings
This table compares Diversified Restaurant Holdings and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Diversified Restaurant Holdings||$166.70 million||$20.34 million||-8.64|
|Diversified Restaurant Holdings Competitors||$2.04 billion||$349.24 million||-4.43|
Diversified Restaurant Holdings’ rivals have higher revenue and earnings than Diversified Restaurant Holdings. Diversified Restaurant Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Diversified Restaurant Holdings has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Diversified Restaurant Holdings’ rivals have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.
Diversified Restaurant Holdings rivals beat Diversified Restaurant Holdings on 7 of the 12 factors compared.
About Diversified Restaurant Holdings
Diversified Restaurant Holdings, Inc. (DRH) is a restaurant company. The Company is a franchisee of Buffalo Wild Wings (BWW).As of September 25, 2016, the Company operated 64 BWW restaurants, which are located in Michigan, Florida, Missouri, Illinois and Indiana. The BWW restaurants feature a range of menu items with a multimedia social environment, a bar and an open layout designed to create a dining experience for sports fans and families. Its guests have the option of watching various sporting events on projection screens or televisions. As of September 25, 2016, the BWW menu specialized in 21 sauces and seasonings with flavors ranging from Sweet BBQ to Blazin’. As of September 25, 2016, the restaurants offered 12 to 30 domestic and imported beers on tap, including several local or regional microbrews and a selection of bottled beer, wine and liquor.
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