BurgerFi International (NASDAQ:BFI) and Sweetgreen (NYSE:SG) Financial Contrast

BurgerFi International (NASDAQ:BFI) and Sweetgreen (NYSE:SG) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares BurgerFi International and Sweetgreen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BurgerFi International	-18.05%	-34.41%	-8.81%
Sweetgreen	-19.41%	-21.58%	-12.36%

Volatility & Risk

BurgerFi International has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Sweetgreen has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500.

Earnings & Valuation

This table compares BurgerFi International and Sweetgreen’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BurgerFi International	$170.10 million	0.06	-$30.71 million	($1.22)	-0.33
Sweetgreen	$584.04 million	3.93	-$113.38 million	($1.00)	-20.31

BurgerFi International has higher earnings, but lower revenue than Sweetgreen. Sweetgreen is trading at a lower price-to-earnings ratio than BurgerFi International, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

15.1% of BurgerFi International shares are held by institutional investors. Comparatively, 95.8% of Sweetgreen shares are held by institutional investors. 21.8% of BurgerFi International shares are held by insiders. Comparatively, 22.0% of Sweetgreen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for BurgerFi International and Sweetgreen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BurgerFi International	0	0	1	0	3.00
Sweetgreen	1	2	5	0	2.50

BurgerFi International presently has a consensus price target of $4.00, suggesting a potential upside of 903.01%. Sweetgreen has a consensus price target of $20.50, suggesting a potential upside of 0.94%. Given BurgerFi International’s stronger consensus rating and higher possible upside, research analysts plainly believe BurgerFi International is more favorable than Sweetgreen.

Summary

Sweetgreen beats BurgerFi International on 8 of the 14 factors compared between the two stocks.

About BurgerFi International

BurgerFi International, Inc., together with its subsidiaries, owns and franchises fast-casual and premium-casual dining restaurants under BurgerFi and Anthony's brand name in the United States. It operates through BurgerFi and Anthony's segments. The company's restaurants offer burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer, wine; and pizza, coal fired chicken wings, homemade meatballs, and handcrafted sandwiches and salads. The company was formerly known as Opes Acquisition Corp. and changed its name to BurgerFi International, Inc. in December 2020. BurgerFi International, Inc. was founded in 2011 and is headquartered in Fort Lauderdale, Florida.

About Sweetgreen

Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.