Comparing Texas Roadhouse (NASDAQ:TXRH) and Dutch Bros (NYSE:BROS)

Dutch Bros (NYSE:BROS) and Texas Roadhouse (NASDAQ:TXRH) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

85.5% of Dutch Bros shares are owned by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are owned by institutional investors. 42.4% of Dutch Bros shares are owned by insiders. Comparatively, 0.5% of Texas Roadhouse shares 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.

Earnings and Valuation

This table compares Dutch Bros and Texas Roadhouse”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.64 billion	5.05	$79.84 million	$0.64	78.62
Texas Roadhouse	$5.88 billion	1.83	$405.55 million	$6.09	26.76

Texas Roadhouse has higher revenue and earnings than Dutch Bros. Texas Roadhouse is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Dutch Bros has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Dutch Bros and Texas Roadhouse, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	3	20	1	2.92
Texas Roadhouse	0	13	11	1	2.52

Dutch Bros currently has a consensus price target of $75.95, suggesting a potential upside of 50.95%. Texas Roadhouse has a consensus price target of $195.90, suggesting a potential upside of 20.20%. Given Dutch Bros’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Dutch Bros is more favorable than Texas Roadhouse.

Profitability

This table compares Dutch Bros and Texas Roadhouse’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.87%	9.56%	2.82%
Texas Roadhouse	6.90%	27.88%	12.23%

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.