Dutch Bros (NYSE:BROS) & BJ’s Restaurants (NASDAQ:BJRI) Financial Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.61%	9.42%	2.80%
BJ’s Restaurants	3.15%	13.48%	4.92%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dutch Bros and BJ’s Restaurants, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	3	20	1	2.92
BJ’s Restaurants	2	6	2	0	2.00

Dutch Bros currently has a consensus price target of $75.77, indicating a potential upside of 48.21%. BJ’s Restaurants has a consensus price target of $42.00, indicating a potential downside of 0.26%. Given Dutch Bros’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Dutch Bros is more favorable than BJ’s Restaurants.

Valuation & Earnings

This table compares Dutch Bros and BJ’s Restaurants”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.75 billion	4.81	$79.84 million	$0.64	79.88
BJ’s Restaurants	$1.40 billion	0.63	$48.81 million	$1.98	21.27

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.

Insider and Institutional Ownership

85.5% of Dutch Bros shares are owned by institutional investors. Comparatively, 100.0% of BJ’s Restaurants shares are owned by institutional investors. 38.9% of Dutch Bros shares are owned by insiders. Comparatively, 4.9% of BJ’s Restaurants shares are owned 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.

Volatility and Risk

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

Summary

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

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.

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.