Contrasting Bloomin’ Brands (NASDAQ:BLMN) and J Alexanders (NASDAQ:JAX)

Bloomin’ Brands (NASDAQ:BLMN) and J Alexanders (NYSE:JAX) 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 risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

94.2% of Bloomin’ Brands shares are held by institutional investors. Comparatively, 70.1% of J Alexanders shares are held by institutional investors. 4.4% of Bloomin’ Brands shares are held by insiders. Comparatively, 16.5% of J Alexanders shares are held 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.



Profitability

This table compares Bloomin’ Brands and J Alexanders’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bloomin’ Brands 2.62% 105.54% 4.67%
J Alexanders 2.56% 8.42% 4.99%

Dividends

Bloomin’ Brands pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. J Alexanders does not pay a dividend. Bloomin’ Brands pays out 26.7% of its earnings in the form of a dividend. Bloomin’ Brands has increased its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Bloomin’ Brands and J Alexanders’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bloomin’ Brands $4.13 billion 0.42 $107.10 million $1.50 13.22
J Alexanders $242.26 million 0.71 $4.00 million $0.60 19.42

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

Volatility & Risk

Bloomin’ Brands has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, J Alexanders has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Bloomin’ Brands and J Alexanders, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bloomin’ Brands 1 2 9 0 2.67
J Alexanders 0 0 0 0 N/A

Bloomin’ Brands currently has a consensus target price of $21.89, suggesting a potential upside of 10.38%. Given Bloomin’ Brands’ higher possible upside, research analysts clearly believe Bloomin’ Brands is more favorable than J Alexanders.

Summary

Bloomin’ Brands beats J Alexanders on 10 of the 16 factors compared between the two stocks.

Bloomin’ Brands Company Profile

Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. The company operates through two segments, U.S. and International. Its restaurant portfolio has four concepts, including Outback Steakhouse, a casual steakhouse restaurant; Carrabba's Italian Grill, a casual Italian restaurant; Bonefish Grill, an upscale casual seafood restaurant; and Fleming's Prime Steakhouse & Wine Bar, a contemporary steakhouse. As of December 31, 2017, the company owned and operated 1,075 restaurants and franchised 165 restaurants. Bloomin' Brands, Inc. was incorporated in 2006 and is headquartered in Tampa, Florida.

J Alexanders Company Profile

J. Alexander's Holdings, Inc., through its subsidiaries, owns and operates complementary upscale dining restaurants in the United States. It operates restaurants under various concepts, including J. Alexander's, Redlands Grill, Lyndhurst Grill, Overland Park Grill, and River Steakhouse and Grill. The company's restaurants offer American menu. As of April 29, 2019, it operated 46 restaurants in 16 states. J. Alexander's Holdings, Inc. was founded in 1970 and is headquartered in Nashville, Tennessee.

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