Biglari (NYSE:BH.A) and Papa John’s International (NASDAQ:PZZA) Head to Head Contrast

Biglari (NYSE:BH.A) and Papa John’s International (NASDAQ:PZZA) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Biglari and Papa John’s International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biglari	0	0	0	0	0.00
Papa John’s International	1	8	4	0	2.23

Papa John’s International has a consensus price target of $50.50, suggesting a potential upside of 23.59%. Given Papa John’s International’s stronger consensus rating and higher probable upside, analysts clearly believe Papa John’s International is more favorable than Biglari.

Valuation and Earnings

This table compares Biglari and Papa John’s International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biglari	$362.11 million	10.98	$333.66 million	$146.34	11.92
Papa John’s International	$2.06 billion	0.65	$83.49 million	$1.12	36.48

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

Volatility & Risk

Biglari has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Institutional & Insider Ownership

7.7% of Biglari shares are held by institutional investors. 70.9% of Biglari shares are held by company insiders. Comparatively, 1.3% of Papa John’s International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Biglari and Papa John’s International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biglari	N/A	N/A	N/A
Papa John’s International	1.79%	-13.54%	6.36%

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.

About Papa John’s International

Papa John’s International, Inc. engages in the operation and franchise of pizza delivery and carryout restaurants. It operates through the following segments: Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, International Operations, and All Others. The Domestic Company-Owned Restaurants segment consists of retail sales of pizza and side items, breadsticks, cheese sticks, chicken poppers and wings, dessert items, and canned and bottled beverages. The North America Franchising segment involves the offering of sales and support activities, development rights, and collection of royalties from franchisees located in the United States and Canada. The North America Commissaries segment includes the eleven full-service regional dough production and distribution and quality control centers. The International Operations segment represents all restaurant operations outside of the United States and Canada. The All Others segment focuses on franchise contributions to marketing funds and sale, company-owned and franchised restaurants, information systems and related services used in restaurant operations, point-of-sale system, online and other technology-based ordering platforms, printing, and promotional items. The company was founded by John H. Schnatter in 1984 and is headquartered in Louisville, KY.