Biglari (NYSE:BH.A) versus Restaurant Brands International (NYSE:QSR) Head to Head Survey

Restaurant Brands International (NYSE:QSR) and Biglari (NYSE:BH.A) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Risk and Volatility

Restaurant Brands International has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Biglari has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Institutional & Insider Ownership

82.3% of Restaurant Brands International shares are held by institutional investors. Comparatively, 7.7% of Biglari shares are held by institutional investors. 1.3% of Restaurant Brands International shares are held by insiders. Comparatively, 70.9% of Biglari shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Restaurant Brands International and Biglari’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Restaurant Brands International	8.23%	32.51%	6.46%
Biglari	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Restaurant Brands International and Biglari, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Restaurant Brands International	1	9	12	0	2.50
Biglari	0	0	0	0	0.00

Restaurant Brands International presently has a consensus price target of $77.20, suggesting a potential upside of 7.63%. Given Restaurant Brands International’s stronger consensus rating and higher probable upside, research analysts clearly believe Restaurant Brands International is more favorable than Biglari.

Earnings & Valuation

This table compares Restaurant Brands International and Biglari”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Restaurant Brands International	$9.43 billion	2.63	$776.00 million	$2.36	30.39
Biglari	$362.11 million	12.54	$333.66 million	$146.34	13.60

Restaurant Brands International has higher revenue and earnings than Biglari. Biglari is trading at a lower price-to-earnings ratio than Restaurant Brands International, indicating that it is currently the more affordable of the two stocks.

Summary

Restaurant Brands International beats Biglari on 9 of the 14 factors compared between the two stocks.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2019, it operated 368 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 48 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers; and operates oil and natural gas properties offshore in the Gulf of Mexico. In addition, it publishes and sells magazines, and related publishing products under the MAXIM and Maxim brand name; and licenses media products and services, as well as is involved in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.