Buffalo Wild Wings (NASDAQ: BWLD) and Bob Evans Farms (NASDAQ:BOBE) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Dividends
Bob Evans Farms pays an annual dividend of $1.36 per share and has a dividend yield of 2.1%. Buffalo Wild Wings does not pay a dividend. Bob Evans Farms pays out 21.7% of its earnings in the form of a dividend. Buffalo Wild Wings has raised its dividend for 9 consecutive years.
Valuation & Earnings
This table compares Buffalo Wild Wings and Bob Evans Farms’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Buffalo Wild Wings | $2.02 billion | 0.83 | $261.12 million | $3.90 | 27.68 |
| Bob Evans Farms | $394.84 million | 3.28 | $71.50 million | $6.27 | 10.36 |
Buffalo Wild Wings has higher revenue and earnings than Bob Evans Farms. Bob Evans Farms is trading at a lower price-to-earnings ratio than Buffalo Wild Wings, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Buffalo Wild Wings and Bob Evans Farms, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Buffalo Wild Wings | 1 | 18 | 5 | 0 | 2.17 |
| Bob Evans Farms | 0 | 3 | 3 | 0 | 2.50 |
Buffalo Wild Wings presently has a consensus target price of $141.00, indicating a potential upside of 30.62%. Bob Evans Farms has a consensus target price of $75.08, indicating a potential upside of 15.60%. Given Buffalo Wild Wings’ higher probable upside, equities analysts clearly believe Buffalo Wild Wings is more favorable than Bob Evans Farms.
Volatility & Risk
Buffalo Wild Wings has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Bob Evans Farms has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
Profitability
This table compares Buffalo Wild Wings and Bob Evans Farms’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Buffalo Wild Wings | 3.39% | 17.14% | 7.49% |
| Bob Evans Farms | 15.15% | 19.58% | 6.82% |
Insider and Institutional Ownership
95.4% of Buffalo Wild Wings shares are owned by institutional investors. Comparatively, 81.7% of Bob Evans Farms shares are owned by institutional investors. 1.2% of Buffalo Wild Wings shares are owned by company insiders. Comparatively, 1.2% of Bob Evans Farms shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Buffalo Wild Wings beats Bob Evans Farms on 9 of the 17 factors compared between the two stocks.
Buffalo Wild Wings Company Profile
Buffalo Wild Wings, Inc. is the owner, operator and franchisor of restaurants. As of December 25, 2016, the Company’s made-to-order menu items included 16 sauces and five seasonings, ranging from Sweet BBQ to Blazin. The Company’s restaurants offer 20 to 40 domestic and imported beers on tap, including craft brews, and a selection of bottled beers, wines and liquor. As of December 25, 2016, the Company had company-owned or franchised restaurants in all 50 states and two Canadian provinces. Its franchised restaurants also operate in Mexico, Saudi Arabia, Philippines, Panama and the United Arab Emirates. The Company operates Buffalo Wild Wings, R Taco and PizzaRev restaurants, as well as sells Buffalo Wild Wings and R Taco restaurant franchises. In addition to traditional and boneless chicken wings, the Company’s menu features a range of food items, including sharables, hamburgers, sandwiches, wraps, Buffalito soft tacos, and salads.
Bob Evans Farms Company Profile
Bob Evans Farms, Inc. (Bob Evans) is a producer and distributor of refrigerated potato, pasta and vegetable-based side dishes, pork sausage, and a variety of refrigerated and frozen food items under the Bob Evans and Owens or Country Creek brand names. The Company’s food products are distributed to customers throughout the United States. Additionally, the Company manufactures and sells similar products to foodservice customers, restaurants and food sellers. The Company operates through BEF Foods segment. The BEF Foods segment offers a range of wholesome food products to retail and foodservice customers. The Company produces food products in its four manufacturing facilities. It produces sausage products at its plants located in Hillsdale, Michigan, and Xenia, Ohio.
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