First Watch Restaurant Group (NASDAQ:FWRG – Get Rating) and Papa John’s International (NASDAQ:PZZA – Get Rating) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings for First Watch Restaurant Group and Papa John’s International, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
First Watch Restaurant Group | 0 | 1 | 9 | 0 | 2.90 |
Papa John’s International | 0 | 3 | 11 | 0 | 2.79 |
First Watch Restaurant Group presently has a consensus price target of $22.50, indicating a potential upside of 41.15%. Papa John’s International has a consensus price target of $132.71, indicating a potential upside of 51.10%. Given Papa John’s International’s higher probable upside, analysts plainly believe Papa John’s International is more favorable than First Watch Restaurant Group.
Valuation & Earnings
This table compares First Watch Restaurant Group and Papa John’s International’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
First Watch Restaurant Group | $601.19 million | 1.57 | -$2.11 million | N/A | N/A |
Papa John’s International | $2.07 billion | 1.52 | $120.02 million | ($0.55) | -159.69 |
Papa John’s International has higher revenue and earnings than First Watch Restaurant Group.
Profitability
This table compares First Watch Restaurant Group and Papa John’s International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
First Watch Restaurant Group | N/A | N/A | N/A |
Papa John’s International | 4.60% | -75.29% | 14.26% |
Institutional and Insider Ownership
97.4% of First Watch Restaurant Group shares are owned by institutional investors. Comparatively, 98.5% of Papa John’s International shares are owned by institutional investors. 4.1% of First Watch Restaurant Group shares are owned by company insiders. Comparatively, 8.9% of Papa John’s International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Papa John’s International beats First Watch Restaurant Group on 8 of the 11 factors compared between the two stocks.
First Watch Restaurant Group Company Profile (Get Rating)
First Watch Restaurant Group, Inc. operates and franchises restaurants under the First Watch trade name. As of March 23, 2022, it operated 341 company-owned restaurants and 94 franchised restaurants in 28 states 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 headquartered in Bradenton, Florida.
Papa John’s International Company Profile (Get Rating)
Papa John’s International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John’s trademark in the United States and internationally. It operates through four segments: Domestic Company-Owned Restaurants, North America Commissaries, North America Franchising, and International Operations. The company also operates dine-in and delivery restaurants under the Papa John’s trademark internationally. As of December 26, 2021, it operated 5,650 Papa John’s restaurants, which included 600 company-owned and 5,050 franchised restaurants in 50 countries and territories. The company was founded in 1984 and is based in Louisville, Kentucky.
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