Head to Head Contrast: FAT Brands (NASDAQ:FATBB) versus Kinross Gold (NYSE:KGC)

FAT Brands (NASDAQ:FATBB) and Kinross Gold (NYSE:KGC) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Insider and Institutional Ownership

63.7% of Kinross Gold shares are held by institutional investors. 59.9% of FAT Brands shares are held by company insiders. Comparatively, 1.0% of Kinross Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for FAT Brands and Kinross Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FAT Brands	1	0	0	0	1.00
Kinross Gold	0	3	13	1	2.88

Kinross Gold has a consensus target price of $37.50, indicating a potential upside of 60.59%. Given Kinross Gold’s stronger consensus rating and higher probable upside, analysts clearly believe Kinross Gold is more favorable than FAT Brands.

Dividends

FAT Brands pays an annual dividend of $0.14 per share and has a dividend yield of 15.8%. Kinross Gold pays an annual dividend of $0.16 per share and has a dividend yield of 0.7%. FAT Brands pays out -1.0% of its earnings in the form of a dividend. Kinross Gold pays out 6.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FAT Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares FAT Brands and Kinross Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FAT Brands	-39.33%	N/A	-17.57%
Kinross Gold	37.52%	34.00%	23.84%

Volatility and Risk

FAT Brands has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Kinross Gold has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares FAT Brands and Kinross Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FAT Brands	$574.14 million	0.03	-$189.85 million	($13.35)	-0.07
Kinross Gold	$7.05 billion	3.92	$2.39 billion	$2.64	8.85

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

Summary

Kinross Gold beats FAT Brands on 13 of the 17 factors compared between the two stocks.

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.

About Kinross Gold

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, Brazil, Chile, Canada, and Mauritania. The company operates the Fort Knox mine and the Manh Choh project in Alaska, as well as the Round Mountain and the Bald Mountain mines in Nevada, the United States; the Paracatu mine in Brazil; the La Coipa and the Lobo-Marte project in Chile; the Tasiast mine in Mauritania; and the Great Bear project in Canada. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.