Critical Analysis: Dutch Bros (BROS) & The Competition

Dutch Bros (NYSE:BROS) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its rivals? We will compare Dutch Bros to similar companies based on the strength of its dividends, valuation, earnings, profitability, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Dutch Bros and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.91%	10.01%	2.95%
Dutch Bros Competitors	2.33%	-40.13%	2.12%

Analyst Recommendations

This is a summary of recent recommendations for Dutch Bros and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	4	20	1	2.88
Dutch Bros Competitors	3788	17180	25454	901	2.50

Dutch Bros currently has a consensus price target of $66.08, indicating a potential upside of 53.97%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 60.51%. Given Dutch Bros’ rivals higher possible upside, analysts plainly believe Dutch Bros has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

85.5% of Dutch Bros shares are held by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are held by institutional investors. 38.9% of Dutch Bros shares are held by company insiders. Comparatively, 22.2% of shares of all “Hotels, Restaurants & Leisure” companies 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.

Volatility and Risk

Dutch Bros has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500. Comparatively, Dutch Bros’ rivals have a beta of 1.63, indicating that their average stock price is 63% more volatile than the S&P 500.

Earnings & Valuation

This table compares Dutch Bros and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dutch Bros	$1.88 billion	$79.84 million	59.61
Dutch Bros Competitors	$3.42 billion	$247.14 million	-148.55

Dutch Bros’ rivals have higher revenue and earnings than Dutch Bros. Dutch Bros is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Dutch Bros beats its rivals on 10 of the 13 factors compared.

Dutch Bros Company Profile

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.