Head to Head Review: BJ’s Restaurants (NASDAQ:BJRI) versus Dutch Bros (NYSE:BROS)

BJ’s Restaurants (NASDAQ:BJRI) and Dutch Bros (NYSE:BROS) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Insider and Institutional Ownership

100.0% of BJ’s Restaurants shares are held by institutional investors. Comparatively, 85.5% of Dutch Bros shares are held by institutional investors. 4.9% of BJ’s Restaurants shares are held by insiders. Comparatively, 38.9% of Dutch Bros shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares BJ’s Restaurants and Dutch Bros’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BJ’s Restaurants	3.49%	13.82%	5.01%
Dutch Bros	4.87%	9.56%	2.82%

Earnings & Valuation

This table compares BJ’s Restaurants and Dutch Bros”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Restaurants	$1.40 billion	0.58	$48.81 million	$2.15	17.80
Dutch Bros	$1.64 billion	5.74	$79.84 million	$0.64	89.35

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

Volatility and Risk

BJ’s Restaurants has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for BJ’s Restaurants and Dutch Bros, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Restaurants	2	6	2	0	2.00
Dutch Bros	0	3	22	1	2.92

BJ’s Restaurants presently has a consensus target price of $41.88, suggesting a potential upside of 9.39%. Dutch Bros has a consensus target price of $75.50, suggesting a potential upside of 32.03%. Given Dutch Bros’ stronger consensus rating and higher possible upside, analysts plainly believe Dutch Bros is more favorable than BJ’s Restaurants.

Summary

Dutch Bros beats BJ’s Restaurants on 11 of the 15 factors compared between the two stocks.

About BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.