Ruby Tuesday (RT) versus Its Peers Head to Head Review

Ruby Tuesday (NYSE: RT) is one of 44 public companies in the “Restaurants & Bars” industry, but how does it weigh in compared to its competitors? We will compare Ruby Tuesday to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability

This table compares Ruby Tuesday and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ruby Tuesday -11.15% -5.30% -2.30%
Ruby Tuesday Competitors 1.77% 12.50% 1.76%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ruby Tuesday and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ruby Tuesday 0 0 0 0 N/A
Ruby Tuesday Competitors 272 1548 2139 73 2.50

As a group, “Restaurants & Bars” companies have a potential upside of 10.95%. Given Ruby Tuesday’s competitors higher possible upside, analysts clearly believe Ruby Tuesday has less favorable growth aspects than its competitors.

Risk and Volatility

Ruby Tuesday has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Ruby Tuesday’s competitors have a beta of 0.67, suggesting that their average stock price is 33% less volatile than the S&P 500.

Insider and Institutional Ownership

76.1% of Ruby Tuesday shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 4.8% of Ruby Tuesday shares are owned by company insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are owned 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.

Earnings & Valuation

This table compares Ruby Tuesday and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ruby Tuesday $951.97 million $29.49 million -1.28
Ruby Tuesday Competitors $2.04 billion $349.24 million -4.55

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

Summary

Ruby Tuesday competitors beat Ruby Tuesday on 8 of the 9 factors compared.

Ruby Tuesday Company Profile

Ruby Tuesday, Inc. owns and operates Ruby Tuesday casual dining and Lime Fresh Mexican Grill (Lime Fresh) casual restaurants. The Company also franchises the Ruby Tuesday concept in selected domestic and international markets, and the Lime Fresh concept in selected domestic markets. Its segments include Ruby Tuesday concept and Lime Fresh concept. As of March 1, 2016, the Company operated 729 Ruby Tuesday restaurants in 44 states, 13 foreign countries, and Guam, and there were 16 Lime Fresh restaurants in two states. Of those restaurants, it owned and operated approximately 649 Ruby Tuesday restaurants and franchised over 80 Ruby Tuesday restaurants, which consisted of 28 domestic and 52 international restaurants. It also owned and operated over eight Lime Fresh restaurants and franchised eight Lime Fresh domestic restaurants. The Company’s corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic and Midwest of the United States.

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