Head to Head Analysis: FAT Brands (FATBB) vs. Its Rivals

FAT Brands (NASDAQ:FATBB) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it weigh in compared to its rivals? We will compare FAT Brands to similar companies based on the strength of its valuation, profitability, analyst recommendations, dividends, earnings, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for FAT Brands and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FAT Brands	1	0	0	0	1.00
FAT Brands Competitors	6420	22621	32338	1800	2.47

As a group, “Metals & Mining” companies have a potential upside of 28.35%. Given FAT Brands’ rivals stronger consensus rating and higher probable upside, analysts clearly believe FAT Brands has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 59.9% of FAT Brands shares are owned by company insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

FAT Brands has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, FAT Brands’ rivals have a beta of 0.96, meaning that their average stock price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares FAT Brands and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FAT Brands	$574.14 million	-$189.85 million	-0.07
FAT Brands Competitors	$5.49 billion	$278.26 million	-26.34

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

Dividends

FAT Brands pays an annual dividend of $0.14 per share and has a dividend yield of 15.8%. FAT Brands pays out -1.0% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.3% and pay out 10.8% of their earnings in the form of a dividend. FAT Brands is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares FAT Brands and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FAT Brands	-39.33%	N/A	-17.57%
FAT Brands Competitors	-1,161,736,352,322,426,600.00%	-52.89%	-2.07%

Summary

FAT Brands rivals beat FAT Brands on 8 of the 15 factors compared.

About FAT Brands

FAT Brands Inc. is a global franchising company that develops, acquires, markets and operates restaurant concepts across a range of dining categories. Its portfolio includes full-service, fast-casual and quick-service brands serving products such as burgers, pizza, wings, Mexican food, pasta, sandwiches, frozen desserts, cookies and pretzels. The company’s restaurant brands include Fatburger, Johnny Rockets, Twin Peaks, Fazoli’s, Round Table Pizza, Great American Cookies, Marble Slab Creamery, Hot Dog on a Stick, Pretzelmaker, Elevation Burger, Native Grill & Wings, Buffalo’s Cafe and Buffalo’s Express.