Bravo Brio Restaurant Group (NASDAQ: TXRH) and Texas Roadhouse (NASDAQ:TXRH) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Dividends

Texas Roadhouse pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Bravo Brio Restaurant Group does not pay a dividend. Texas Roadhouse pays out 50.8% of its earnings in the form of a dividend. Texas Roadhouse has raised its dividend for 7 consecutive years.

Earnings & Valuation

This table compares Bravo Brio Restaurant Group and Texas Roadhouse’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bravo Brio Restaurant Group $407.61 million 0.15 -$9.76 million $0.22 18.41
Texas Roadhouse $2.22 billion 2.32 $131.52 million $1.97 36.59

Texas Roadhouse has higher revenue and earnings than Bravo Brio Restaurant Group. Bravo Brio Restaurant Group is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

34.4% of Bravo Brio Restaurant Group shares are held by institutional investors. Comparatively, 91.4% of Texas Roadhouse shares are held by institutional investors. 7.5% of Bravo Brio Restaurant Group shares are held by company insiders. Comparatively, 5.9% of Texas Roadhouse shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Bravo Brio Restaurant Group has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Bravo Brio Restaurant Group and Texas Roadhouse’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bravo Brio Restaurant Group -3.86% -15.00% -2.55%
Texas Roadhouse 6.76% 18.15% 12.19%

Analyst Recommendations

This is a breakdown of recent recommendations for Bravo Brio Restaurant Group and Texas Roadhouse, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bravo Brio Restaurant Group 0 1 0 0 2.00
Texas Roadhouse 2 12 5 0 2.16

Bravo Brio Restaurant Group currently has a consensus target price of $2.50, indicating a potential downside of 38.27%. Texas Roadhouse has a consensus target price of $63.43, indicating a potential downside of 12.00%. Given Texas Roadhouse’s stronger consensus rating and higher probable upside, analysts clearly believe Texas Roadhouse is more favorable than Bravo Brio Restaurant Group.

Summary

Texas Roadhouse beats Bravo Brio Restaurant Group on 14 of the 17 factors compared between the two stocks.

About Bravo Brio Restaurant Group

Bravo Brio Restaurant Group, Inc. owns and operates Italian restaurants in the United States. It operates full-service Italian restaurants under the BRAVO! Cucina Italiana brand name; Italian chophouse restaurants under the BRIO Tuscan Grille brand name; and full-service American-French bistro restaurant under the Bon Vie brand name. The company's restaurants primarily offer Italian food and wine. As of December 31, 2017, it operated 49 BRAVO! restaurants, 64 BRIO restaurants, and 1 Bon Vie restaurant in 32 states. The company was formerly known as Bravo Development, Inc. and changed its name to Bravo Brio Restaurant Group, Inc. in June 2010. Bravo Brio Restaurant Group, Inc. was incorporated in 1987 and is based in Columbus, Ohio.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises Texas Roadhouse and Bubba's 33 restaurants. As of February 20, 2018, it owned and operated approximately 550 restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

Receive News & Ratings for Bravo Brio Restaurant Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bravo Brio Restaurant Group and related companies with MarketBeat.com's FREE daily email newsletter.