Critical Contrast: Bojangles’ (BOJA) versus Its Rivals

Bojangles’ (NASDAQ: BOJA) is one of 44 public companies in the “Restaurants & Bars” industry, but how does it contrast to its peers? We will compare Bojangles’ to similar businesses based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for Bojangles’ and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bojangles’ 0 6 2 0 2.25
Bojangles’ Competitors 272 1552 2146 73 2.50

Bojangles’ presently has a consensus price target of $18.43, suggesting a potential upside of 40.14%. As a group, “Restaurants & Bars” companies have a potential upside of 10.50%. Given Bojangles”s higher probable upside, research analysts clearly believe Bojangles’ is more favorable than its peers.

Earnings & Valuation

This table compares Bojangles’ and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Bojangles’ $538.50 million $79.81 million 13.84
Bojangles’ Competitors $2.04 billion $349.24 million -4.43

Bojangles”s peers have higher revenue and earnings than Bojangles’. Bojangles’ is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

91.3% of Bojangles’ shares are held by institutional investors. Comparatively, 69.0% of shares of all “Restaurants & Bars” companies are held by institutional investors. 55.3% of Bojangles’ shares are held by company insiders. Comparatively, 20.6% of shares of all “Restaurants & Bars” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Bojangles’ has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500. Comparatively, Bojangles”s peers have a beta of 0.67, suggesting that their average share price is 33% less volatile than the S&P 500.

Profitability

This table compares Bojangles’ and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bojangles’ 6.70% 17.05% 6.47%
Bojangles’ Competitors 1.77% 12.50% 1.76%

Summary

Bojangles’ beats its peers on 8 of the 13 factors compared.

About Bojangles’

Bojangles’, Inc. is a restaurant operator and franchisor. The Company offers food made from its Southern recipes. The Company’s menu includes its made-from-scratch, buttermilk biscuits baked fresh every 20 minutes; its fresh, never-frozen bone-in fried chicken; its fixin’s; its Bo-Smart menu featuring items, such as salads, grilled chicken sandwiches, roasted chicken bites and fat-free green beans; its freshly baked and delicious sweets menu, and its Legendary Iced Tea. The Company’s food is offered a la carte and in combos. The Company’s chicken, fixin’s, biscuits and Legendary Iced Tea may also be ordered in boxes or family meals, and larger combinations may be offered as tailgate specials or may be packaged in its Big Bo Box. The Company offers Southern style mac ‘n cheese made from two cheeses; fat-free green beans; cole slaw, and mashed potatoes with gravy. Its menu also features salads, sandwiches and its whole meat Roasted Chicken Bites.

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