Bloomin’ Brands (NASDAQ: BLMN) and Ruby Tuesday (NYSE:RT) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares Bloomin’ Brands and Ruby Tuesday’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bloomin’ Brands $4.19 billion 0.42 $402.41 million $0.90 20.01
Ruby Tuesday $951.97 million 0.15 $29.49 million ($1.26) -1.90

Bloomin’ Brands has higher revenue and earnings than Ruby Tuesday. Ruby Tuesday is trading at a lower price-to-earnings ratio than Bloomin’ Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Bloomin’ Brands and Ruby Tuesday, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bloomin’ Brands 1 7 2 0 2.10
Ruby Tuesday 0 0 0 0 N/A

Bloomin’ Brands presently has a consensus target price of $20.78, suggesting a potential upside of 15.37%. Given Bloomin’ Brands’ higher possible upside, equities research analysts clearly believe Bloomin’ Brands is more favorable than Ruby Tuesday.

Profitability

This table compares Bloomin’ Brands and Ruby Tuesday’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bloomin’ Brands 2.29% 74.68% 5.48%
Ruby Tuesday -8.36% -3.67% -1.56%

Dividends

Bloomin’ Brands pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. Ruby Tuesday does not pay a dividend. Bloomin’ Brands pays out 35.6% of its earnings in the form of a dividend.

Risk & Volatility

Bloomin’ Brands has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Ruby Tuesday has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Insider & Institutional Ownership

99.9% of Bloomin’ Brands shares are owned by institutional investors. Comparatively, 76.0% of Ruby Tuesday shares are owned by institutional investors. 7.0% of Bloomin’ Brands shares are owned by insiders. Comparatively, 4.8% of Ruby Tuesday shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Bloomin’ Brands beats Ruby Tuesday on 13 of the 14 factors compared between the two stocks.

About Bloomin’ Brands

Bloomin’ Brands, Inc. is a holding company. The Company owns and operates casual, upscale casual and fine dining restaurants. The Company operates through two segments: U.S. and International. The U.S. segment includes all brands operating in the United States. The International segment includes brands operating outside the United States. As of December 25, 2016, the Company had a portfolio of four restaurant concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. OSI Restaurant Partners, LLC (OSI) is the Company’s primary operating entity. New Private Restaurant Properties, LLC (PRP), an indirect subsidiary of the Company, leases the Company-owned restaurant properties to OSI’s subsidiaries. As of December 25, 2016, the Company owned and operated 1,276 restaurants and franchised 240 restaurants across 48 states, Puerto Rico, Guam and 20 countries.

About Ruby Tuesday

Ruby Tuesday, Inc. owns and operates Ruby Tuesday casual dining and Lime Fresh Mexican Grill (Lime Fresh) casual restaurants. The Company also franchises the Ruby Tuesday concept in selected domestic and international markets, and the Lime Fresh concept in selected domestic markets. Its segments include Ruby Tuesday concept and Lime Fresh concept. As of March 1, 2016, the Company operated 729 Ruby Tuesday restaurants in 44 states, 13 foreign countries, and Guam, and there were 16 Lime Fresh restaurants in two states. Of those restaurants, it owned and operated approximately 649 Ruby Tuesday restaurants and franchised over 80 Ruby Tuesday restaurants, which consisted of 28 domestic and 52 international restaurants. It also owned and operated over eight Lime Fresh restaurants and franchised eight Lime Fresh domestic restaurants. The Company’s corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic and Midwest of the United States.

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