Potbelly (NASDAQ:PBPB) and J Alexanders (NYSE:JAX) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.
This table compares Potbelly and J Alexanders’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
71.9% of Potbelly shares are held by institutional investors. Comparatively, 70.8% of J Alexanders shares are held by institutional investors. 10.2% of Potbelly shares are held by company insiders. Comparatively, 15.0% of J Alexanders shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Potbelly and J Alexanders’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Potbelly||$428.11 million||0.72||-$6.95 million||$0.31||39.19|
|J Alexanders||$233.26 million||0.72||$7.33 million||$0.53||21.64|
J Alexanders has lower revenue, but higher earnings than Potbelly. J Alexanders is trading at a lower price-to-earnings ratio than Potbelly, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Potbelly has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, J Alexanders has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Potbelly and J Alexanders, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Potbelly presently has a consensus price target of $13.00, suggesting a potential upside of 7.00%. Given Potbelly’s higher possible upside, analysts clearly believe Potbelly is more favorable than J Alexanders.
Potbelly Company Profile
Potbelly Corporation, through its subsidiaries, owns, operates, and franchises Potbelly Sandwich Works sandwich shops in the United States. It offers toasty warm sandwiches, salads, and other items. As of February 23, 2018, the company operated approximately 400 shops in the United States; and approximately 50 franchisees operated shops in the United States, the Middle East, the United Kingdom, Canada, and India. 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.
J Alexanders Company Profile
J. Alexander's Holdings, Inc., through its subsidiaries, owns and operates full service restaurants in the United States. It operates four complementary upscale dining restaurant concepts, including J. Alexander's, Redlands Grill, Lyndhurst Grill, and Stoney River Steakhouse and Grill (Stoney River). The company's restaurants offer American menu. As of September 19, 2018, it operated 45 restaurants in 16 states. J. Alexander's Holdings, Inc. was founded in 1970 and is headquartered in Nashville, Tennessee.
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