FAT Brands (NASDAQ: FAT) is one of 58 public companies in the “Eating places” industry, but how does it compare to its rivals? We will compare FAT Brands to similar businesses based on the strength of its institutional ownership, risk, earnings, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares FAT Brands and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FAT Brands -12.14% -55.18% -3.22%
FAT Brands Competitors -2.85% -67.53% 0.31%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FAT Brands and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FAT Brands 0 1 0 0 2.00
FAT Brands Competitors 1163 4354 4503 208 2.37

As a group, “Eating places” companies have a potential upside of 4.76%. Given FAT Brands’ rivals stronger consensus rating and higher probable upside, analysts plainly believe FAT Brands has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares FAT Brands and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FAT Brands $22.50 million -$1.02 million -37.89
FAT Brands Competitors $1.98 billion $195.62 million 15.85

FAT Brands’ rivals have higher revenue and earnings than FAT Brands. FAT Brands is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

FAT Brands has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, FAT Brands’ rivals have a beta of 1.25, indicating that their average stock price is 25% more volatile than the S&P 500.

Institutional & Insider Ownership

1.3% of FAT Brands shares are owned by institutional investors. Comparatively, 61.4% of shares of all “Eating places” companies are owned by institutional investors. 2.8% of FAT Brands shares are owned by company insiders. Comparatively, 15.4% of shares of all “Eating places” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

FAT Brands rivals beat FAT Brands on 11 of the 13 factors compared.

FAT Brands Company Profile

FAT Brands Inc., a multi-brand franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts. As of April 22, 2019, it owned 7 restaurant brands, including Fatburger, Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Yalla Mediterranean, Ponderosa Steakhouse, and Bonanza Steakhouse with approximately 300 locations open and 200 under development worldwide. The company was founded in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Capital Group Inc.

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