Analyzing Biglari (NYSE:BH.A) and Meritage Hospitality Group (OTCMKTS:MHGU)

Risk & Volatility

Meritage Hospitality Group has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Biglari has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Earnings and Valuation

This table compares Meritage Hospitality Group and Biglari”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meritage Hospitality Group	$668.80 million	0.07	$7.80 million	($0.51)	-13.24
Biglari	$362.11 million	11.20	$333.66 million	$146.34	12.16

Biglari has lower revenue, but higher earnings than Meritage Hospitality Group. Meritage Hospitality Group is trading at a lower price-to-earnings ratio than Biglari, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Meritage Hospitality Group and Biglari’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meritage Hospitality Group	-0.10%	-0.54%	-0.08%
Biglari	N/A	N/A	N/A

Insider & Institutional Ownership

7.7% of Biglari shares are held by institutional investors. 67.8% of Meritage Hospitality Group shares are held by insiders. Comparatively, 70.9% of Biglari 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.

Summary

Biglari beats Meritage Hospitality Group on 10 of the 11 factors compared between the two stocks.

About Meritage Hospitality Group

Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Morning Belle, and Stan's Tacos, as well as Taco John's brand names in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. It is also involved in franchising activities. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was incorporated in 1986 and is based in Grand Rapids, Michigan.

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.