Restaurant Brands International (NYSE:QSR) vs. Bally’s (NYSE:BALY) Head to Head Comparison

Bally’s (NYSE:BALY) and Restaurant Brands International (NYSE:QSR) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares Bally’s and Restaurant Brands International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bally’s	$2.45 billion	0.19	-$701.10 million	($6.80)	-1.32
Restaurant Brands International	$9.43 billion	2.90	$776.00 million	$3.72	21.07

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

Insider and Institutional Ownership

70.4% of Bally’s shares are owned by institutional investors. Comparatively, 82.3% of Restaurant Brands International shares are owned by institutional investors. 69.3% of Bally’s shares are owned by insiders. Comparatively, 1.2% of Restaurant Brands International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Bally’s and Restaurant Brands International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bally’s	2	3	0	0	1.60
Restaurant Brands International	0	8	16	0	2.67

Bally’s currently has a consensus price target of $11.75, indicating a potential upside of 30.63%. Restaurant Brands International has a consensus price target of $84.00, indicating a potential upside of 7.19%. Given Bally’s’ higher possible upside, equities research analysts clearly believe Bally’s is more favorable than Restaurant Brands International.

Risk & Volatility

Bally’s has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Restaurant Brands International has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Profitability

This table compares Bally’s and Restaurant Brands International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bally’s	-25.83%	-40.97%	-7.66%
Restaurant Brands International	13.12%	33.43%	6.94%

Summary

Restaurant Brands International beats Bally’s on 11 of the 14 factors compared between the two stocks.

About Bally’s

Bally’s Corp. is a global casino-entertainment company with a portfolio of casinos and resorts and online gaming businesses. It operates through the following segments: Casinos & Resorts, International Interactive, and North America Interactive. The Casinos & Resorts segment consists of the company’s casino and resort properties, a horse racetrack, and a golf course. The International Interactive segment includes the European and Asian operations of Gamesys, a business-to-consumer iCasino operator. The North America Interactive segment covers a portfolio of sports betting, iGaming, and free-to-play gaming brands such as Bally’s Interactive, SportCaller, and Live at the Bike, and the North American operations of Gamesys. The company was founded on March 1, 2004 and is headquartered in Providence, RI.

About Restaurant Brands International

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). The company owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and other food products. It is also involved in owning and franchising BK, a fast-food hamburger restaurant chain, which offers flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks, and other food items; and PLK quick service restaurants that provide Louisiana-style fried chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items. In addition, the company owns and franchises FHS quick service restaurants that offer meats and cheese, chopped salads, chili and soups, signature and other sides, soft drinks, and local specialties. The company was founded in 1954 and is headquartered in Toronto, Canada.