Head to Head Analysis: Dutch Bros (NYSE:BROS) vs. Bloomin’ Brands (NASDAQ:BLMN)

Bloomin’ Brands (NASDAQ:BLMN) and Dutch Bros (NYSE:BROS) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Bloomin’ Brands and Dutch Bros’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bloomin’ Brands	0.70%	28.95%	3.47%
Dutch Bros	4.91%	10.01%	2.95%

Analyst Ratings

This is a breakdown of recent recommendations for Bloomin’ Brands and Dutch Bros, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bloomin’ Brands	0	11	0	0	2.00
Dutch Bros	0	4	20	1	2.88

Bloomin’ Brands currently has a consensus target price of $10.90, indicating a potential upside of 3.08%. Dutch Bros has a consensus target price of $66.08, indicating a potential upside of 53.97%. Given Dutch Bros’ stronger consensus rating and higher possible upside, analysts plainly believe Dutch Bros is more favorable than Bloomin’ Brands.

Institutional and Insider Ownership

85.5% of Dutch Bros shares are owned by institutional investors. 1.2% of Bloomin’ Brands shares are owned by insiders. Comparatively, 38.9% of Dutch Bros shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Bloomin’ Brands and Dutch Bros”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bloomin’ Brands	$3.96 billion	0.23	$8.24 million	$0.31	34.10
Dutch Bros	$1.64 billion	4.58	$79.84 million	$0.72	59.61

Dutch Bros has lower revenue, but higher earnings than Bloomin’ Brands. Bloomin’ Brands is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Bloomin’ Brands has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.31, indicating that its share price is 131% more volatile than the S&P 500.

Summary

Dutch Bros beats Bloomin’ Brands on 12 of the 15 factors compared between the two stocks.

About Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.