Analyzing Brinker International (NYSE:EAT) & J d Wetherspoon (OTCMKTS:JDWPY)

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

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current ratings for J d Wetherspoon and Brinker International, as reported 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 target price of $185.11, suggesting a potential upside of 31.75%. Given Brinker International’s stronger consensus rating and higher probable upside, analysts clearly believe Brinker International is more favorable than J d Wetherspoon.

Valuation & Earnings

This table compares J d Wetherspoon and Brinker International”s revenue, earnings per share (EPS) 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	$5.38 billion	1.12	$383.10 million	$10.20	13.77

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

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%

Summary

Brinker International beats J d Wetherspoon on 10 of the 10 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.