Head-To-Head Comparison: Potbelly Corporation (PBPB) versus Cracker Barrel Old Country Store (CBRL)

Potbelly Corporation (NASDAQ: PBPB) and Cracker Barrel Old Country Store (NASDAQ:CBRL) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Insider and Institutional Ownership

67.5% of Potbelly Corporation shares are held by institutional investors. Comparatively, 86.2% of Cracker Barrel Old Country Store shares are held by institutional investors. 9.6% of Potbelly Corporation shares are held by insiders. Comparatively, 0.9% of Cracker Barrel Old Country Store shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Potbelly Corporation and Cracker Barrel Old Country Store’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Potbelly Corporation $407.13 million 0.72 $8.21 million $0.09 132.24
Cracker Barrel Old Country Store $2.93 billion 1.27 $201.89 million $8.38 18.45

Cracker Barrel Old Country Store has higher revenue and earnings than Potbelly Corporation. Cracker Barrel Old Country Store is trading at a lower price-to-earnings ratio than Potbelly Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Potbelly Corporation and Cracker Barrel Old Country Store’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Potbelly Corporation 0.54% 7.80% 5.48%
Cracker Barrel Old Country Store 6.90% 35.49% 13.26%

Analyst Ratings

This is a summary of current ratings and recommmendations for Potbelly Corporation and Cracker Barrel Old Country Store, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Potbelly Corporation 0 3 1 0 2.25
Cracker Barrel Old Country Store 1 8 0 0 1.89

Potbelly Corporation currently has a consensus price target of $13.67, indicating a potential upside of 14.85%. Cracker Barrel Old Country Store has a consensus price target of $158.78, indicating a potential upside of 2.68%. Given Potbelly Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Potbelly Corporation is more favorable than Cracker Barrel Old Country Store.

Volatility & Risk

Potbelly Corporation has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Cracker Barrel Old Country Store has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Dividends

Cracker Barrel Old Country Store pays an annual dividend of $4.80 per share and has a dividend yield of 3.1%. Potbelly Corporation does not pay a dividend. Cracker Barrel Old Country Store pays out 57.3% of its earnings in the form of a dividend. Cracker Barrel Old Country Store has increased its dividend for 7 consecutive years.

Summary

Cracker Barrel Old Country Store beats Potbelly Corporation on 10 of the 17 factors compared between the two stocks.

Potbelly Corporation Company Profile

Potbelly Corporation owns and operates Potbelly Sandwich Works sandwich shops in the United States. The Company has domestic and international franchise operations of Potbelly Sandwich Works sandwich shops. As of December 25, 2016, the Company operated Potbelly Sandwich Works sandwich shops in 29 states and the District of Columbia. As of December 25, 2016, the Company had a domestic base of 441 shops in 29 states and the District of Columbia. Of these, the company operated 411 shops, and franchisees operated 30 shops, as of December 25, 2016. As of December 25, 2016, the Company had 13 international franchised shops, which included 11 shops in the Middle East, a shop in the United Kingdom and a shop in Canada. As of December 25, 2016, the Company had domestic franchise shops in Arkansas, Iowa, Illinois, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Texas and Virginia.

Cracker Barrel Old Country Store Company Profile

Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Company’s segments include Restaurant and Retail. As of September 19, 2016, the Company operated 640 Cracker Barrel stores in 43 states. The format of its stores consists of a rustic old country-store design offering a restaurant menu that features home-style country food and a range of decorative and functional items, such as rocking chairs, holiday and seasonal gifts and toys, apparel, cookware and foods. Its restaurants offer home-style country cooking featuring of its own recipes. Its restaurants serve breakfast, lunch and dinner. Its breakfast items include juices, eggs, pancakes, grits, and a range of biscuit specialties. Its lunch and dinner items include country ham, chicken and dumplings, chicken fried chicken, meatloaf, fresh side items and specialty items, such as pinto beans and turnip greens.

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