Reviewing J d Wetherspoon (OTCMKTS:JDWPY) and Brinker International (NYSE:EAT)

J d Wetherspoon (OTCMKTS:JDWPY) and Brinker International (NYSE:EAT) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk & Volatility

J d Wetherspoon has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Profitability

This table compares J d Wetherspoon and Brinker International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J d Wetherspoon	N/A	N/A	N/A
Brinker International	8.07%	123.22%	16.94%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for J d Wetherspoon and Brinker International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J d Wetherspoon	1	0	0	0	1.00
Brinker International	0	7	14	0	2.67

Brinker International has a consensus price target of $185.11, indicating a potential upside of 26.08%. Given Brinker International’s stronger consensus rating and higher probable upside, analysts clearly believe Brinker International is more favorable than J d Wetherspoon.

Earnings & Valuation

This table compares J d Wetherspoon and Brinker International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J d Wetherspoon	$2.76 billion	0.36	$88.36 million	N/A	N/A
Brinker International	$5.73 billion	1.10	$383.10 million	$10.20	14.39

Brinker International has higher revenue and earnings than J d Wetherspoon.

Dividends

J d Wetherspoon pays an annual dividend of $0.50 per share and has a dividend yield of 1.1%. Brinker International pays an annual dividend of $1.52 per share and has a dividend yield of 1.0%. Brinker International pays out 14.9% of its earnings in the form of a dividend.

Summary

Brinker International beats J d Wetherspoon on 10 of the 12 factors compared between the two stocks.

About J d Wetherspoon

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. The company was founded in 1979 and is based in Watford, the United Kingdom.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.