Diversified Restaurant Holdings (NASDAQ: SAUC) is one of 44 public companies in the “Restaurants & Bars” industry, but how does it contrast to its competitors? We will compare Diversified Restaurant Holdings to similar businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Diversified Restaurant Holdings and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diversified Restaurant Holdings 0 0 1 0 3.00
Diversified Restaurant Holdings Competitors 371 1706 2182 82 2.45

Diversified Restaurant Holdings currently has a consensus target price of $3.50, indicating a potential upside of 71.48%. As a group, “Restaurants & Bars” companies have a potential upside of 13.55%. Given Diversified Restaurant Holdings’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Diversified Restaurant Holdings is more favorable than its competitors.

Profitability

This table compares Diversified Restaurant Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diversified Restaurant Holdings -3.39% -60.83% -0.51%
Diversified Restaurant Holdings Competitors 1.38% 21.16% 1.32%

Volatility and Risk

Diversified Restaurant Holdings has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Diversified Restaurant Holdings’ competitors have a beta of 0.66, suggesting that their average share price is 34% less volatile than the S&P 500.

Valuation & Earnings

This table compares Diversified Restaurant Holdings and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Diversified Restaurant Holdings $166.70 million $20.34 million -9.28
Diversified Restaurant Holdings Competitors $2.03 billion $348.19 million -5.36

Diversified Restaurant Holdings’ competitors have higher revenue and earnings than Diversified Restaurant Holdings. Diversified Restaurant Holdings 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.

Insider & Institutional Ownership

11.1% of Diversified Restaurant Holdings shares are owned by institutional investors. Comparatively, 69.8% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 48.2% of Diversified Restaurant Holdings shares are owned by company insiders. Comparatively, 20.2% of shares of all “Restaurants & Bars” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Diversified Restaurant Holdings competitors beat Diversified Restaurant Holdings on 7 of the 12 factors compared.

Diversified Restaurant Holdings Company Profile

Diversified Restaurant Holdings, Inc. (DRH) is a restaurant company. The Company is a franchisee of Buffalo Wild Wings (BWW).As of September 25, 2016, the Company operated 64 BWW restaurants, which are located in Michigan, Florida, Missouri, Illinois and Indiana. The BWW restaurants feature a range of menu items with a multimedia social environment, a bar and an open layout designed to create a dining experience for sports fans and families. Its guests have the option of watching various sporting events on projection screens or televisions. As of September 25, 2016, the BWW menu specialized in 21 sauces and seasonings with flavors ranging from Sweet BBQ to Blazin’. As of September 25, 2016, the restaurants offered 12 to 30 domestic and imported beers on tap, including several local or regional microbrews and a selection of bottled beer, wine and liquor.

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