FAT Brands (NASDAQ: FAT) is one of 58 publicly-traded companies in the “Eating places” industry, but how does it contrast to its competitors? We will compare FAT Brands to related businesses based on the strength of its risk, dividends, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Volatility & Risk

FAT Brands has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, FAT Brands’ competitors have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Insider and Institutional Ownership

1.3% of FAT Brands shares are held by institutional investors. Comparatively, 61.4% of shares of all “Eating places” companies are held by institutional investors. 2.8% of FAT Brands shares are held by insiders. Comparatively, 15.4% of shares of all “Eating places” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for FAT Brands and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FAT Brands 0 1 0 0 2.00
FAT Brands Competitors 1167 4366 4511 209 2.37

As a group, “Eating places” companies have a potential upside of 3.38%. Given FAT Brands’ competitors stronger consensus rating and higher probable upside, analysts plainly believe FAT Brands has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
FAT Brands -12.14% -55.18% -3.22%
FAT Brands Competitors -2.85% -35.55% 0.29%

Valuation and Earnings

This table compares FAT Brands and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FAT Brands $22.50 million -$1.02 million -38.89
FAT Brands Competitors $1.98 billion $195.62 million 16.14

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

Summary

FAT Brands competitors beat FAT Brands on 12 of the 13 factors compared.

About FAT Brands

FAT Brands Inc., a multi-brand franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts. As of April 22, 2019, it owned 7 restaurant brands, including Fatburger, Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Yalla Mediterranean, Ponderosa Steakhouse, and Bonanza Steakhouse with approximately 300 locations open and 200 under development worldwide. The company was founded in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Capital Group Inc.

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