Luby’s (LUB) and Bloomin’ Brands (BLMN) Head-To-Head Analysis

Luby’s (NYSE: LUB) and Bloomin’ Brands (NASDAQ:BLMN) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Luby’s and Bloomin’ Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Luby’s -6.19% -6.38% -4.01%
Bloomin’ Brands 1.93% 94.30% 5.15%

Valuation and Earnings

This table compares Luby’s and Bloomin’ Brands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Luby’s $376.03 million 0.20 -$10.34 million ($0.79) -3.32
Bloomin’ Brands $4.25 billion 0.36 $41.74 million $0.77 22.05

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

Institutional & Insider Ownership

42.9% of Luby’s shares are owned by institutional investors. 35.2% of Luby’s shares are owned by insiders. Comparatively, 7.0% of Bloomin’ Brands shares are owned 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.

Volatility & Risk

Luby’s has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Bloomin’ Brands has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Dividends

Bloomin’ Brands pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. Luby’s does not pay a dividend. Bloomin’ Brands pays out 41.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Luby’s and Bloomin’ Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Luby’s 0 0 0 0 N/A
Bloomin’ Brands 1 7 3 0 2.18

Bloomin’ Brands has a consensus price target of $21.00, indicating a potential upside of 23.67%. Given Bloomin’ Brands’ higher probable upside, analysts clearly believe Bloomin’ Brands is more favorable than Luby’s.

Summary

Bloomin’ Brands beats Luby’s on 11 of the 14 factors compared between the two stocks.

Luby’s Company Profile

Luby’s, Inc., is a multi-branded company operating in the restaurant industry and in the contract food services industry. The Company is managed through three segments: Company-owned restaurants, franchise operations, and Culinary Contract Services (CSS). The company-owned restaurants brands are Luby’s Cafeteria, Fuddruckers, and Cheeseburger in Paradise with a couple of non-core restaurant locations under other brand names. As of August 31, 2016, the Company owned and operated 175 restaurants, with 127 in Texas and the remainder in other states. The Company offers franchises for the Fuddruckers brand. As of August 31, 2016, the number of franchised restaurants were 113. Culinary Contract Services consists of contract arrangements to manage food services for clients operating in three lines of business: healthcare, higher education, and corporate dining. As of August 31, 2016, the Company had 24 Culinary Contract Services contracts.

Bloomin’ Brands Company Profile

Bloomin’ Brands, Inc. is a holding company. The Company owns and operates casual, upscale casual and fine dining restaurants. The Company operates through two segments: U.S. and International. The U.S. segment includes all brands operating in the United States. The International segment includes brands operating outside the United States. As of December 25, 2016, the Company had a portfolio of four restaurant concepts: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. OSI Restaurant Partners, LLC (OSI) is the Company’s primary operating entity. New Private Restaurant Properties, LLC (PRP), an indirect subsidiary of the Company, leases the Company-owned restaurant properties to OSI’s subsidiaries. As of December 25, 2016, the Company owned and operated 1,276 restaurants and franchised 240 restaurants across 48 states, Puerto Rico, Guam and 20 countries.

Receive News & Ratings for Luby's Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Luby's Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply