Sweetgreen (NYSE:SG) and BurgerFi International (NASDAQ:BFI) Head-To-Head Contrast

Sweetgreen (NYSE:SG) and BurgerFi International (NASDAQ:BFI) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for Sweetgreen and BurgerFi International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sweetgreen	1	2	5	0	2.50
BurgerFi International	0	0	1	0	3.00

Sweetgreen presently has a consensus target price of $20.50, suggesting a potential downside of 5.57%. BurgerFi International has a consensus target price of $4.00, suggesting a potential upside of 912.91%. Given BurgerFi International’s stronger consensus rating and higher probable upside, analysts clearly believe BurgerFi International is more favorable than Sweetgreen.

Earnings and Valuation

This table compares Sweetgreen and BurgerFi International’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sweetgreen	$584.04 million	4.20	-$113.38 million	($1.00)	-21.71
BurgerFi International	$170.10 million	0.06	-$30.71 million	($1.22)	-0.32

BurgerFi International has lower revenue, but higher earnings than Sweetgreen. Sweetgreen is trading at a lower price-to-earnings ratio than BurgerFi International, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.8% of Sweetgreen shares are owned by institutional investors. Comparatively, 15.1% of BurgerFi International shares are owned by institutional investors. 22.0% of Sweetgreen shares are owned by company insiders. Comparatively, 21.8% of BurgerFi International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Sweetgreen has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, BurgerFi International has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Profitability

This table compares Sweetgreen and BurgerFi International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sweetgreen	-19.41%	-21.58%	-12.36%
BurgerFi International	-18.05%	-34.41%	-8.81%

Summary

Sweetgreen beats BurgerFi International on 8 of the 14 factors compared between the two stocks.

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.

About BurgerFi International

BurgerFi International, Inc., together with its subsidiaries, owns and franchises fast-casual and premium-casual dining restaurants under BurgerFi and Anthony's brand name in the United States. It operates through BurgerFi and Anthony's segments. The company's restaurants offer burgers, hot dogs, crispy chicken, frozen custard, hand-cut fries, shakes, beer, wine; and pizza, coal fired chicken wings, homemade meatballs, and handcrafted sandwiches and salads. The company was formerly known as Opes Acquisition Corp. and changed its name to BurgerFi International, Inc. in December 2020. BurgerFi International, Inc. was founded in 2011 and is headquartered in Fort Lauderdale, Florida.