Contrasting FAT Brands (FATBB) & Its Competitors

FAT Brands (NASDAQ:FATBB) is one of 1,984 public companies in the “Metals & Mining” industry, but how does it weigh in compared to its peers? We will compare FAT Brands to related businesses based on the strength of its valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Profitability

This table compares FAT Brands and its peers’ 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%
FAT Brands Competitors	-1,168,050,136,845,918,000.00%	-53.16%	-2.09%

Insider & Institutional Ownership

16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 59.9% of FAT Brands shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares FAT Brands and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FAT Brands	$574.14 million	-$189.85 million	-0.07
FAT Brands Competitors	$4.79 billion	$279.47 million	-45.00

FAT Brands’ peers have higher revenue and earnings than FAT Brands. FAT Brands is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

FAT Brands has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, FAT Brands’ peers have a beta of 0.97, suggesting that their average stock price is 3% less volatile than the S&P 500.

Dividends

FAT Brands pays an annual dividend of $0.14 per share and has a dividend yield of 15.8%. FAT Brands pays out -1.0% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.3% and pay out 10.8% of their earnings in the form of a dividend. FAT Brands is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and target prices for FAT Brands and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FAT Brands	1	0	0	0	1.00
FAT Brands Competitors	6404	22596	32294	1796	2.47

As a group, “Metals & Mining” companies have a potential upside of 28.34%. Given FAT Brands’ peers stronger consensus rating and higher possible upside, analysts clearly believe FAT Brands has less favorable growth aspects than its peers.

Summary

FAT Brands peers beat FAT Brands on 8 of the 15 factors compared.

FAT Brands Company Profile

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.