Habit Restaurants (NASDAQ: BJRI) and BJ’s Restaurants (NASDAQ:BJRI) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.
Risk & Volatility
Habit Restaurants has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, BJ’s Restaurants has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.
Institutional and Insider Ownership
59.6% of Habit Restaurants shares are held by institutional investors. Comparatively, 95.3% of BJ’s Restaurants shares are held by institutional investors. 16.0% of Habit Restaurants shares are held by company insiders. Comparatively, 6.8% of BJ’s Restaurants shares are held by company 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.
Earnings & Valuation
This table compares Habit Restaurants and BJ’s Restaurants’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Habit Restaurants||$331.70 million||1.37||-$2.80 million||$0.16||108.75|
|BJ’s Restaurants||$1.03 billion||1.52||$44.78 million||$1.41||53.05|
BJ’s Restaurants has higher revenue and earnings than Habit Restaurants. BJ’s Restaurants is trading at a lower price-to-earnings ratio than Habit Restaurants, indicating that it is currently the more affordable of the two stocks.
BJ’s Restaurants pays an annual dividend of $0.44 per share and has a dividend yield of 0.6%. Habit Restaurants does not pay a dividend. BJ’s Restaurants pays out 31.2% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Habit Restaurants and BJ’s Restaurants, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Habit Restaurants presently has a consensus target price of $13.83, suggesting a potential downside of 20.50%. BJ’s Restaurants has a consensus target price of $58.64, suggesting a potential downside of 21.61%. Given Habit Restaurants’ higher probable upside, analysts plainly believe Habit Restaurants is more favorable than BJ’s Restaurants.
This table compares Habit Restaurants and BJ’s Restaurants’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
BJ’s Restaurants beats Habit Restaurants on 11 of the 16 factors compared between the two stocks.
About Habit Restaurants
The Habit Restaurants, Inc., a holding company, operates and franchises fast casual restaurants under The Habit Burger Grill name. It specializes in offering made-to-order char-grilled burgers and sandwiches featuring choice tri-tip steak, grilled chicken, and sushi-grade tuna cooked over an open flame; and salads, as well as sides, shakes, and malts. As of February 28, 2018, the company had 215 restaurants in California, Arizona, Utah, New Jersey, Florida, Idaho, Virginia, Nevada, Washington, Maryland, and Pennsylvania as well as 3 international locations. The Habit Restaurants, Inc. was founded in 1969 and is headquartered in Irvine, California.
About BJ’s Restaurants
BJ's Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts. As of June 12, 2018, the company owned and operated 200 casual dining restaurants located in the 27 states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Washington. The company operates its restaurants under the BJ's Restaurant & Brewhouse, BJ's Restaurant & Brewery, BJ's Pizza & Grill, and BJ's Grill brand names. BJ's Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.
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