BJ’s Restaurants (NASDAQ:BJRI) versus Buffalo Wild Wings (BWLD) Head-To-Head Analysis

Buffalo Wild Wings (NASDAQ: BWLD) and BJ’s Restaurants (NASDAQ:BJRI) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Risk & Volatility

Buffalo Wild Wings has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, BJ’s Restaurants has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Buffalo Wild Wings and BJ’s Restaurants, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Buffalo Wild Wings 1 18 6 0 2.20
BJ’s Restaurants 1 8 1 0 2.00

Buffalo Wild Wings presently has a consensus target price of $131.15, suggesting a potential upside of 11.86%. BJ’s Restaurants has a consensus target price of $36.89, suggesting a potential upside of 16.74%. Given BJ’s Restaurants’ higher possible upside, analysts clearly believe BJ’s Restaurants is more favorable than Buffalo Wild Wings.

Profitability

This table compares Buffalo Wild Wings and BJ’s Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Buffalo Wild Wings 3.17% 21.39% 7.44%
BJ’s Restaurants 3.30% 13.85% 5.14%

Valuation & Earnings

This table compares Buffalo Wild Wings and BJ’s Restaurants’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Buffalo Wild Wings $1.99 billion 0.92 $94.74 million $3.84 30.53
BJ’s Restaurants $993.05 million 0.66 $45.55 million $1.52 20.79

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

Dividends

BJ’s Restaurants pays an annual dividend of $0.11 per share and has a dividend yield of 0.3%. Buffalo Wild Wings does not pay a dividend. BJ’s Restaurants pays out 7.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

89.1% of Buffalo Wild Wings shares are held by institutional investors. Comparatively, 99.0% of BJ’s Restaurants shares are held by institutional investors. 1.2% of Buffalo Wild Wings shares are held by insiders. Comparatively, 6.8% of BJ’s Restaurants shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Buffalo Wild Wings beats BJ’s Restaurants on 10 of the 16 factors compared between the two stocks.

Buffalo Wild Wings Company Profile

Buffalo Wild Wings, Inc. is the owner, operator and franchisor of restaurants. As of December 25, 2016, the Company’s made-to-order menu items included 16 sauces and five seasonings, ranging from Sweet BBQ to Blazin. The Company’s restaurants offer 20 to 40 domestic and imported beers on tap, including craft brews, and a selection of bottled beers, wines and liquor. As of December 25, 2016, the Company had company-owned or franchised restaurants in all 50 states and two Canadian provinces. Its franchised restaurants also operate in Mexico, Saudi Arabia, Philippines, Panama and the United Arab Emirates. The Company operates Buffalo Wild Wings, R Taco and PizzaRev restaurants, as well as sells Buffalo Wild Wings and R Taco restaurant franchises. In addition to traditional and boneless chicken wings, the Company’s menu features a range of food items, including sharables, hamburgers, sandwiches, wraps, Buffalito soft tacos, and salads.

BJ’s Restaurants Company Profile

BJ’s Restaurants, Inc. owns and operates restaurants. The Company segment includes casual dining company-owned restaurants. Each of its restaurants is operated either as a BJ’s Restaurant & Brewhouse, a BJ’s Restaurant & Brewery, a BJ’s Pizza & Grill or a BJ’s Grill restaurant. The Company’s restaurants offer craft beers and other beers, as well as a selection of appetizers, entrees, pastas, burgers and sandwiches, specialty salads, and desserts, including its warm pizza cookie dessert, the Pizookie. As of February 27, 2017, the Company owned and operated 189 restaurants located in 24 states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Maryland, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Washington.

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