Yum! Brands (NYSE:YUM) versus Bojangles (NYSE:BOJA) Critical Analysis
Yum! Brands (NYSE:YUM) and Bojangles (NASDAQ:BOJA) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
74.9% of Yum! Brands shares are owned by institutional investors. Comparatively, 90.5% of Bojangles shares are owned by institutional investors. 0.7% of Yum! Brands shares are owned by insiders. Comparatively, 52.9% of Bojangles shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Yum! Brands has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Bojangles has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
Valuation and Earnings
This table compares Yum! Brands and Bojangles’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Yum! Brands||$5.69 billion||6.01||$1.54 billion||$3.17||35.26|
|Bojangles||$547.44 million||1.10||$72.00 million||$0.83||19.39|
Yum! Brands has higher revenue and earnings than Bojangles. Bojangles is trading at a lower price-to-earnings ratio than Yum! Brands, indicating that it is currently the more affordable of the two stocks.
This table compares Yum! Brands and Bojangles’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Yum! Brands and Bojangles, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yum! Brands currently has a consensus price target of $100.43, suggesting a potential downside of 10.15%. Bojangles has a consensus price target of $16.00, suggesting a potential downside of 0.56%. Given Bojangles’ higher possible upside, analysts plainly believe Bojangles is more favorable than Yum! Brands.
Yum! Brands pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Bojangles does not pay a dividend. Yum! Brands pays out 53.0% of its earnings in the form of a dividend.
Yum! Brands beats Bojangles on 10 of the 16 factors compared between the two stocks.
Yum! Brands Company Profile
YUM! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. It operates in three segments: the KFC Division, the Pizza Hut Division, and the Taco Bell Division. The company operates restaurants under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories. As of December 31, 2018, it had 22,621 KFC units; 18,431 Pizza Hut units; and 7,072 Taco Bell units in approximately 140 countries and territories. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.
Bojangles Company Profile
Bojangles', Inc. develops, operates, and franchises limited service restaurants in the United States. Its restaurants offer made-from-scratch biscuit breakfast sandwiches, hand-breaded bone-in chicken, fixin's, and iced tea. As of July 1, 2018, the company operated 766 system-wide restaurants, including 325 company-operated and 441 franchised restaurants primarily located in the Southeastern United States. Bojangles', Inc. was founded in 1977 and is headquartered in Charlotte, North Carolina.
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