Mitchells & Butlers (OTCMKTS:MBPFF) & First Watch Restaurant Group (NASDAQ:FWRG) Head to Head Contrast

First Watch Restaurant Group (NASDAQ:FWRG) and Mitchells & Butlers (OTCMKTS:MBPFF) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Profitability

This table compares First Watch Restaurant Group and Mitchells & Butlers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Watch Restaurant Group	2.52%	4.15%	1.89%
Mitchells & Butlers	N/A	N/A	N/A

Institutional & Insider Ownership

96.1% of First Watch Restaurant Group shares are held by institutional investors. 5.0% of First Watch Restaurant Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares First Watch Restaurant Group and Mitchells & Butlers’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Watch Restaurant Group	$922.59 million	1.15	$25.39 million	$0.38	46.21
Mitchells & Butlers	$3.07 billion	0.75	-$4.91 million	N/A	N/A

First Watch Restaurant Group has higher earnings, but lower revenue than Mitchells & Butlers.

Risk & Volatility

First Watch Restaurant Group has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Mitchells & Butlers has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for First Watch Restaurant Group and Mitchells & Butlers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Watch Restaurant Group	0	2	3	1	2.83
Mitchells & Butlers	0	0	0	0	N/A

First Watch Restaurant Group presently has a consensus price target of $24.83, suggesting a potential upside of 41.42%. Given First Watch Restaurant Group’s higher possible upside, equities research analysts plainly believe First Watch Restaurant Group is more favorable than Mitchells & Butlers.

Summary

First Watch Restaurant Group beats Mitchells & Butlers on 10 of the 12 factors compared between the two stocks.

About First Watch Restaurant Group

First Watch Restaurant Group, Inc., through its subsidiaries, operates and franchises restaurants under the First Watch trade name in the United States. The company was formerly known as AI Fresh Super Holdco, Inc. and changed its name to First Watch Restaurant Group, Inc. in December 2019. First Watch Restaurant Group, Inc. was founded in 1983 and is based in Bradenton, Florida.

About Mitchells & Butlers

Mitchells & Butlers plc engages in the management of pubs, bars, and restaurants in the United Kingdom and Germany. The company operates its pubs and restaurants under the Alex, All Bar One, Browns, Castle, EGO, Ember Inns, Harvester, High Street, Innkeeper's Lodge, Miller & Carter, Nicholson's, O'Neill's, Premium Country Pubs, Sizzling Pubs, Suburban, Stonehouse Pizza & Carvery, Toby Carvery, and Vintage Inns brands and formats. It also engages in the leisure retailing; property leasing, property management, and development; and financing activities, as well as operates as a healthcare trustee. In addition, the company owns various trademarks. The company was founded in 1898 and is headquartered in Birmingham, the United Kingdom.