Financial Analysis: Biglari (BH.A) & Its Competitors

Institutional and Insider Ownership

7.7% of Biglari shares are owned by institutional investors. Comparatively, 66.6% of shares of all “RETAIL – RESTRNTS” companies are owned by institutional investors. 70.9% of Biglari shares are owned by insiders. Comparatively, 15.6% of shares of all “RETAIL – RESTRNTS” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Biglari and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biglari	N/A	N/A	N/A
Biglari Competitors	3.34%	-5.08%	5.19%

Risk and Volatility

Biglari has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Biglari’s rivals have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares Biglari and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Biglari	$362.11 million	N/A	-6.16
Biglari Competitors	$4.23 billion	$400.87 million	17.82

Biglari’s rivals have higher revenue and earnings than Biglari. Biglari is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Biglari rivals beat Biglari on 5 of the 8 factors compared.

About Biglari

Biglari Holdings Inc., through its subsidiaries, primarily operates and franchises restaurants in the United States. The company owns, operates, and franchises restaurants under the Steak n Shake and Western Sizzlin names. As of December 31, 2019, it operated 368 Steak n Shake company-operated restaurants and 213 franchised units; and 4 Western Sizzlin company-operated restaurants and 48 franchised units. The company also engages in underwriting commercial trucking insurance, and selling physical damage and non-trucking liability insurance to truckers; and operates oil and natural gas properties offshore in the Gulf of Mexico. In addition, it publishes and sells magazines, and related publishing products under the MAXIM and Maxim brand name; and licenses media products and services, as well as is involved in the investment activities. The company was formerly known as The Steak n Shake Company and changed its name to Biglari Holdings Inc. in April 2010. Biglari Holdings Inc. was founded in 1934 and is based in San Antonio, Texas.