First Watch Restaurant Group (NASDAQ:FWRG – Get Free Report) and Mitchells & Butlers (OTCMKTS:MBPFF – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Risk & Volatility
First Watch Restaurant Group has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Mitchells & Butlers has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Earnings & Valuation
This table compares First Watch Restaurant Group and Mitchells & Butlers’ top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
First Watch Restaurant Group | $891.55 million | 1.10 | $25.39 million | $0.38 | 42.71 |
Mitchells & Butlers | $3.07 billion | 0.75 | -$4.91 million | N/A | N/A |
Insider and Institutional Ownership
96.1% of First Watch Restaurant Group shares are owned by institutional investors. 5.0% of First Watch Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares First Watch Restaurant Group and Mitchells & Butlers’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
First Watch Restaurant Group | 2.52% | 4.15% | 1.89% |
Mitchells & Butlers | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for First Watch Restaurant Group and Mitchells & Butlers, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
First Watch Restaurant Group | 0 | 2 | 3 | 1 | 2.83 |
Mitchells & Butlers | 0 | 0 | 0 | 0 | N/A |
First Watch Restaurant Group currently has a consensus target price of $24.17, indicating a potential upside of 48.90%. Given First Watch Restaurant Group’s higher possible upside, equities research analysts plainly believe First Watch Restaurant Group is more favorable than Mitchells & Butlers.
Summary
First Watch Restaurant Group beats Mitchells & Butlers on 10 of the 12 factors compared between the two stocks.
About First Watch Restaurant Group
First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.
About Mitchells & Butlers
Mitchells & Butlers plc engages in the management of pubs, bars, and restaurants in the United Kingdom and Germany. The company operates its pubs and restaurants under the Alex, All Bar One, Browns, Castle, EGO, Ember Inns, Harvester, High Street, Innkeeper's Lodge, Miller & Carter, Nicholson's, O'Neill's, Premium Country Pubs, Sizzling Pubs, Suburban, Stonehouse Pizza & Carvery, Toby Carvery, and Vintage Inns brands and formats. It also engages in the leisure retailing; property leasing, property management, and development; and financing activities, as well as operates as a healthcare trustee. In addition, the company owns various trademarks. The company was founded in 1898 and is headquartered in Birmingham, the United Kingdom.
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