Restaurant Brands International (NYSE: QSR – Get Rating) and BAB (OTCMKTS: BABB – Get Rating) are both retail / wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Risk and Volatility:
Restaurant Brands International has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, BAB has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500.
Dividends:
Restaurant Brands International pays an annual dividend of $ 2.16 per share and has a dividend yield of 4.5%. BAB pays an annual dividend of $ 0.04 per share and has a dividend yield of 4.4%. Restaurant Brands International pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BAB pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Restaurant Brands International has raised its dividend for 7 consecutive years. Restaurant Brands International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership:
80.2% of Restaurant Brands International shares are held by institutional investors. 1.9% of Restaurant Brands International shares are held by company insiders. Comparatively, 33.7% of BAB shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability:
This table compares Restaurant Brands International and BAB’s net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Restaurant Brands International: | 14.20% | 30.02% | 5.25% |
| BAB: | 12.34% | 13.12% | 8.66% |
Analyst Ratings:
This is a breakdown of current recommendations for Restaurant Brands International and BAB, as reported by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Restaurant Brands International: | 2: | 10: | 10: | 0: | 2.36: |
| BAB: | 0: | 0: | 0: | 0: | N / A: |
Restaurant Brands International currently has a consensus price target of $ 66.76, suggesting a potential upside of 39.70%. Given Restaurant Brands International’s higher possible upside, research analysts clearly believe Restaurant Brands International is more favorable than BAB.
Valuation and Earnings:
This table compares Restaurant Brands International and BAB’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| Restaurant Brands International: | $ 5.74 billion: | 2.57: | $ 838.00 million: | $ 2.70: | 17.70: |
| BAB: | $ 3.07 million: | N / A: | $ 650,000.00: | $ 0.05: | 18.20: |
Restaurant Brands International has higher revenue and earnings than BAB. Restaurant Brands International is trading at a lower price-to-earnings ratio than BAB, indicating that it is currently the most affordable of the two stocks.
Summary:
Restaurant Brands International beats BAB on 12 of the 15 factors compared between the two stocks.
Restaurant Brands International Company Profile: (Get Rating)
Restaurant Brands International Inc. operates as quick service restaurant company in Canada and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut / coffee / tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and others. It is also involved in owning and franchising BK, a fast food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS restaurants quick service restaurants that offer subs, soft drinks, and local specialties. As of February 15, 2022, the company had approximately 29,000 restaurants in 100 countries under the Tim Hortons, Burger King, Popeyes, And Firehouse Subs brands. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Toronto, Canada.
BAB Company Profile: (Get Rating)
BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. It’s BAB franchised brand consists of daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products. The company MFM brand comprise of various freshly baked muffins and coffees; and units operating as My Favorite Muffin Your All Day Bakery Café featuring specialty bagel sandwiches and related products. Its SD brand includes frozen yogurt products. As of November 30, 2021, the company had 68 franchise units and 4 licensed units in operation in 20 states. BAB, Inc. was incorporated in 2000 and is based in Deerfield, Illinois.
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