Analyzing Intergroup (NASDAQ:INTG) and Brinker International (NYSE:EAT)

Brinker International (NYSE:EAT) and Intergroup (NASDAQ:INTG) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Risk & Volatility

Brinker International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Intergroup has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

Valuation and Earnings

This table compares Brinker International and Intergroup”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brinker International	$5.93 billion	1.48	$487.00 million	$11.36	18.51
Intergroup	$73.95 million	1.15	$1.64 million	$0.71	55.63

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

Institutional & Insider Ownership

3.4% of Intergroup shares are owned by institutional investors. 1.2% of Brinker International shares are owned by company insiders. Comparatively, 73.8% of Intergroup shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Brinker International and Intergroup, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brinker International	0	4	16	3	2.96
Intergroup	0	1	0	0	2.00

Brinker International presently has a consensus price target of $249.80, indicating a potential upside of 18.78%. Given Brinker International’s stronger consensus rating and higher probable upside, research analysts plainly believe Brinker International is more favorable than Intergroup.

Profitability

This table compares Brinker International and Intergroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brinker International	8.44%	125.65%	18.42%
Intergroup	2.22%	-1.43%	1.60%

Summary

Brinker International beats Intergroup on 12 of the 15 factors compared between the two stocks.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

About Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.