FAT Brands (NASDAQ:FATBB) versus Dutch Bros (NYSE:BROS) Head to Head Analysis

Dutch Bros (NYSE:BROS) and FAT Brands (NASDAQ:FATBB) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

85.5% of Dutch Bros shares are held by institutional investors. 42.4% of Dutch Bros shares are held by insiders. Comparatively, 59.9% of FAT Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Dutch Bros and FAT Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.04%	8.91%	2.64%
FAT Brands	-39.33%	N/A	-17.57%

Analyst Recommendations

This is a summary of current recommendations and price targets for Dutch Bros and FAT Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	4	18	2	2.92
FAT Brands	1	0	0	0	1.00

Dutch Bros presently has a consensus price target of $76.67, indicating a potential upside of 20.98%. Given Dutch Bros’ stronger consensus rating and higher probable upside, equities analysts clearly believe Dutch Bros is more favorable than FAT Brands.

Risk & Volatility

Dutch Bros has a beta of 2.55, suggesting that its share price is 155% more volatile than the S&P 500. Comparatively, FAT Brands has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dutch Bros and FAT Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.28 billion	8.14	$35.26 million	$0.50	126.74
FAT Brands	$574.14 million	0.04	-$189.85 million	($13.35)	-0.10

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

Summary

Dutch Bros beats FAT Brands on 14 of the 15 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

About FAT Brands

FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.