Potbelly (NASDAQ:PBPB – Get Free Report) and Sweetgreen (NYSE:SG – Get Free Report) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Earnings and Valuation
This table compares Potbelly and Sweetgreen”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Potbelly | $477.37 million | 0.52 | $5.12 million | $0.12 | 68.92 |
Sweetgreen | $648.95 million | 6.10 | -$113.38 million | ($0.93) | -37.58 |
Potbelly has higher earnings, but lower revenue than Sweetgreen. Sweetgreen is trading at a lower price-to-earnings ratio than Potbelly, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Insider and Institutional Ownership
72.6% of Potbelly shares are owned by institutional investors. Comparatively, 95.8% of Sweetgreen shares are owned by institutional investors. 9.1% of Potbelly shares are owned by company insiders. Comparatively, 21.5% of Sweetgreen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Potbelly and Sweetgreen, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Potbelly | 0 | 1 | 3 | 0 | 2.75 |
Sweetgreen | 0 | 3 | 8 | 0 | 2.73 |
Potbelly presently has a consensus target price of $14.33, suggesting a potential upside of 73.32%. Sweetgreen has a consensus target price of $38.20, suggesting a potential upside of 9.30%. Given Potbelly’s stronger consensus rating and higher possible upside, analysts clearly believe Potbelly is more favorable than Sweetgreen.
Profitability
This table compares Potbelly and Sweetgreen’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Potbelly | 7.58% | 21.42% | 1.85% |
Sweetgreen | -14.33% | -19.34% | -10.82% |
Summary
Potbelly beats Sweetgreen on 8 of the 14 factors compared between the two stocks.
About Potbelly
Potbelly Corporation, through its subsidiaries, owns, operates, and franchises Potbelly sandwich shops in the United States. The company was formerly known as Potbelly Sandwich Works, Inc. and changed its name to Potbelly Corporation in 2002. Potbelly Corporation was founded in 1977 and is headquartered in Chicago, Illinois.
About Sweetgreen
Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.
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