Marcus Corporation (The) (NYSE: MCS) and Bravo Brio Restaurant Group (NASDAQ:BBRG) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

59.5% of Marcus Corporation (The) shares are held by institutional investors. Comparatively, 57.2% of Bravo Brio Restaurant Group shares are held by institutional investors. 33.5% of Marcus Corporation (The) shares are held by company insiders. Comparatively, 7.5% of Bravo Brio Restaurant Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Marcus Corporation (The) pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. Bravo Brio Restaurant Group does not pay a dividend. Marcus Corporation (The) pays out 33.1% of its earnings in the form of a dividend. Marcus Corporation (The) has increased its dividend for 5 consecutive years.

Risk & Volatility

Marcus Corporation (The) has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Bravo Brio Restaurant Group has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares Marcus Corporation (The) and Bravo Brio Restaurant Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marcus Corporation (The) $594.17 million 0.82 $125.32 million $1.51 16.76
Bravo Brio Restaurant Group $406.00 million 0.09 $20.97 million ($4.99) -0.50

Marcus Corporation (The) has higher revenue and earnings than Bravo Brio Restaurant Group. Bravo Brio Restaurant Group is trading at a lower price-to-earnings ratio than Marcus Corporation (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Marcus Corporation (The) and Bravo Brio Restaurant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marcus Corporation (The) 7.18% 10.78% 4.71%
Bravo Brio Restaurant Group -18.18% -137.99% 1.89%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Marcus Corporation (The) and Bravo Brio Restaurant Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marcus Corporation (The) 0 0 4 0 3.00
Bravo Brio Restaurant Group 1 1 0 0 1.50

Marcus Corporation (The) currently has a consensus target price of $37.60, indicating a potential upside of 48.62%. Bravo Brio Restaurant Group has a consensus target price of $2.88, indicating a potential upside of 15.00%. Given Marcus Corporation (The)’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Marcus Corporation (The) is more favorable than Bravo Brio Restaurant Group.

Summary

Marcus Corporation (The) beats Bravo Brio Restaurant Group on 15 of the 17 factors compared between the two stocks.

Marcus Corporation (The) Company Profile

The Marcus Corporation operates principally in two business segments: Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Ohio, Minnesota, Iowa, North Dakota and Nebraska, and a family entertainment center in Wisconsin. The Hotels and Resorts segment owns and operates hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska, and manages hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, Georgia, Florida and California. As of December 31, 2015, the Company owned or operated 53 movie theatre locations with a total of 668 screens in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. Its owned and operated hotels and resorts include The Pfister Hotel, The Hilton Milwaukee City Center, Hilton Madison at Monona Terrace, The Grand Geneva Resort & Spa, InterContinental Milwaukee, Skirvin Hilton, AC Hotel Chicago Downtown and The Lincoln Marriott Cornhusker Hotel.

Bravo Brio Restaurant Group Company Profile

Bravo Brio Restaurant Group, Inc. is the owner and operator of approximately two Italian restaurant brands, including BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan Grille (BRIO). The Company operates approximately 120 restaurants in over 30 states. Additionally, approximately one BRIO restaurant is operated under a franchise agreement. It has over 110 operating locations, owns approximately four locations, of which over 100 are located adjacent to or in lifestyle centers and shopping malls, and over 10 are free-standing units. Its reward programs, called MyBRAVO Rewards and MyBRIO Rewards, are designed to reward guests for their continuous dining at its restaurants. Its guests can download a MyBRAVO/MyBRIO! Rewards mobile application, register their cards at BRAVO! and BRIO locations or online at www.myBRAVOReward.com or www.myBRIOReward.com. It also operates approximately one full-service American-French bistro restaurant in Columbus, Ohio under the brand Bon Vie.

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