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

Profitability

This table compares Potbelly Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Potbelly Corporation 1.03% 8.68% 6.15%
Potbelly Corporation Competitors 1.75% 12.51% 1.76%

Earnings and Valuation

This table compares Potbelly Corporation and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Potbelly Corporation $415.98 million $39.72 million 72.95
Potbelly Corporation Competitors $2.04 billion $349.09 million -4.20

Potbelly Corporation’s rivals have higher revenue and earnings than Potbelly Corporation. Potbelly Corporation 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.

Volatility & Risk

Potbelly Corporation has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Potbelly Corporation’s rivals have a beta of 0.66, suggesting that their average share price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Potbelly Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Potbelly Corporation 0 3 1 0 2.25
Potbelly Corporation Competitors 375 1725 2197 82 2.45

Potbelly Corporation presently has a consensus price target of $13.67, suggesting a potential upside of 10.22%. As a group, “Restaurants & Bars” companies have a potential upside of 12.02%. Given Potbelly Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Potbelly Corporation has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

72.8% of Potbelly Corporation shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Restaurants & Bars” companies are owned by institutional investors. 9.6% of Potbelly Corporation 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Potbelly Corporation rivals beat Potbelly Corporation on 9 of the 13 factors compared.

Potbelly Corporation Company Profile

Potbelly Corporation owns and operates Potbelly Sandwich Works sandwich shops in the United States. The Company has domestic and international franchise operations of Potbelly Sandwich Works sandwich shops. As of December 25, 2016, the Company operated Potbelly Sandwich Works sandwich shops in 29 states and the District of Columbia. As of December 25, 2016, the Company had a domestic base of 441 shops in 29 states and the District of Columbia. Of these, the company operated 411 shops, and franchisees operated 30 shops, as of December 25, 2016. As of December 25, 2016, the Company had 13 international franchised shops, which included 11 shops in the Middle East, a shop in the United Kingdom and a shop in Canada. As of December 25, 2016, the Company had domestic franchise shops in Arkansas, Iowa, Illinois, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Texas and Virginia.

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