Restaurant Brands International (NYSE: QSR) and Dine Brands Global (NYSE:DIN) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Valuation & Earnings
This table compares Restaurant Brands International and Dine Brands Global’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Restaurant Brands International||$4.58 billion||3.06||$648.80 million||$2.54||22.61|
|Dine Brands Global||$604.82 million||2.10||-$330.53 million||($22.63)||-3.12|
This table compares Restaurant Brands International and Dine Brands Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Restaurant Brands International||12.70%||24.56%||4.49%|
|Dine Brands Global||-54.71%||230.88%||3.96%|
Restaurant Brands International pays an annual dividend of $0.84 per share and has a dividend yield of 1.5%. Dine Brands Global pays an annual dividend of $3.88 per share and has a dividend yield of 5.5%. Restaurant Brands International pays out 33.1% of its earnings in the form of a dividend. Dine Brands Global pays out -17.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Restaurant Brands International has increased its dividend for 2 consecutive years and Dine Brands Global has increased its dividend for 3 consecutive years. Dine Brands Global is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and target prices for Restaurant Brands International and Dine Brands Global, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Restaurant Brands International||0||4||12||0||2.75|
|Dine Brands Global||0||3||2||0||2.40|
Restaurant Brands International presently has a consensus target price of $70.00, suggesting a potential upside of 21.91%. Dine Brands Global has a consensus target price of $71.25, suggesting a potential upside of 0.86%. Given Restaurant Brands International’s stronger consensus rating and higher probable upside, equities analysts clearly believe Restaurant Brands International is more favorable than Dine Brands Global.
Volatility & Risk
Restaurant Brands International has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Dine Brands Global has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500.
Institutional and Insider Ownership
78.3% of Restaurant Brands International shares are held by institutional investors. Comparatively, 96.9% of Dine Brands Global shares are held by institutional investors. 3.1% of Restaurant Brands International shares are held by company insiders. Comparatively, 2.2% of Dine Brands Global shares are held by company 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.
Restaurant Brands International beats Dine Brands Global on 12 of the 17 factors compared between the two stocks.
Restaurant Brands International Company Profile
Restaurant Brands International Inc. is a quick service restaurant (QSR) company. The Company had over 23,000 restaurants in more than 100 countries and the United States territories, as of September 30, 2017. It operates through three segments: Tim Hortons (TH), Burger King (BK) and Popeyes Louisiana Kitchen (PLK). TH restaurants are quick service restaurants with a menu that includes blend coffee, tea, espresso-based hot and cold specialty drinks, baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps and soups, among others. BK restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other specialty sandwiches, French fries, soft drinks and other food items. PLK restaurants are chicken quick service restaurants that feature Louisiana style menu, including chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items.
Dine Brands Global Company Profile
Dine Brands Global, Inc., formerly DineEquity, Inc., through its subsidiaries, owns and franchises the Applebee’s Neighborhood Grill & Bar (Applebee’s) concept in the bar and grill segment within the casual dining category of the restaurant industry. The Company owns, franchises and operates the International House of Pancakes (IHOP) concept in the family dining category of the restaurant industry. It operates through four segments: Franchise operations, Rental operations, Company restaurant operations and Financing operations. As of December 31, 2017, it had 3,722 restaurants. Applebee’s menu features a selection of grill and bar fare, such as appetizers, bar snacks, burgers, classic entrees and lighter fare, as well as cocktails, beers and desserts. As of December 31, 2017, IHOP franchise and area license restaurants were located in 50 states within the United States, in the District of Columbia, in three United States territories and in 13 countries outside of the United States.
Receive News & Ratings for Restaurant Brands International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Restaurant Brands International and related companies with MarketBeat.com's FREE daily email newsletter.