Dine Brands Global (NYSE:DIN) and Meritage Hospitality Group (OTCMKTS:MHGU) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Dine Brands Global pays an annual dividend of $2.76 per share and has a dividend yield of 3.7%. Meritage Hospitality Group does not pay a dividend. Dine Brands Global pays out 51.4% of its earnings in the form of a dividend.
This table compares Dine Brands Global and Meritage Hospitality Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dine Brands Global||$780.93 million||1.63||$80.35 million||$5.37||13.81|
|Meritage Hospitality Group||$435.30 million||0.24||$13.01 million||N/A||N/A|
Dine Brands Global has higher revenue and earnings than Meritage Hospitality Group.
Volatility and Risk
Dine Brands Global has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Meritage Hospitality Group has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Dine Brands Global and Meritage Hospitality Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dine Brands Global||0||0||5||0||3.00|
|Meritage Hospitality Group||0||0||0||0||N/A|
Dine Brands Global presently has a consensus target price of $110.80, suggesting a potential upside of 49.37%. Given Dine Brands Global’s higher possible upside, research analysts plainly believe Dine Brands Global is more favorable than Meritage Hospitality Group.
This table compares Dine Brands Global and Meritage Hospitality Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dine Brands Global||11.73%||-59.85%||6.52%|
|Meritage Hospitality Group||2.94%||20.71%||2.99%|
Dine Brands Global beats Meritage Hospitality Group on 9 of the 11 factors compared between the two stocks.
Dine Brands Global Company Profile
Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally. It operates in five segments: Applebee's Franchise Operations, IHOP Franchise Operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. The company owns and franchises two restaurant concepts, including Applebee's Neighborhood Grill + Bar (Applebee's) in the bar and grill segment of the casual dining category; and International House of Pancakes (IHOP) in the family dining category of the restaurant industry. Its Applebee's restaurants offer American fare with drinks and drafts; and IHOP restaurants provide full table services, and food and beverage offerings. As of December 31, 2018, the company had 1,768 Applebee's franchised restaurants, and 1,831 IHOP franchised and area licensed restaurants. It is also involved in the lease or sublease of 676 IHOP franchised restaurants and 1 Applebee's franchised restaurant; and the financing of franchise fees and equipment leases. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is based in Glendale, California.
Meritage Hospitality Group Company Profile
Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Twisted Rooster, Crooked Goose, Freighters Eatery & Taproom, and Wheelhouse Kitchen & Cocktails brand names. As of November 13, 2018, it operated 314 restaurants in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was incorporated in 1986 and is headquartered in Grand Rapids, Michigan.
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