Nathan's Famous, Inc. (NATH) vs Portillo's Inc. (PTLO)

Nathan's Famous, Inc. and Portillo's Inc. are both Restaurants companies. Nathan's Famous, Inc. is the larger, with a market value of $406.2M against $274.2M — 1.5× the size. Portillo's Inc. trades at the lower P/E: 18.4× against 20.9×. Nathan's Famous, Inc. grew revenue faster over the last twelve months: 12.4% against 2.89%. Nathan's Famous, Inc. has the higher net margin (11.8% vs 1.85%) and the higher return on invested capital (119.2% vs 2.91%). Across the 20 metrics below, Nathan's Famous, Inc. leads on 13 and Portillo's Inc. on 7.

Valuation

Metric NATH PTLO Restaurants median
P/E 20.85 18.42 22.14
P/S 2.46 0.34 0.91
P/B n/m 0.50 2.01
Price to free cash flow 21.79 n/m 19.41
EV/EBITDA 14.16 7.19 11.48
EV/Sales 2.59 0.63 1.20
Earnings yield 4.80% 5.43% 2.30%
Free cash flow yield 4.59% (3.62%) 3.92%

Profitability

Metric NATH PTLO Restaurants median
Gross margin 30.37% 65.31% 38.77%
Operating margin 17.73% 4.55% 4.30%
Net margin 11.78% 1.85% 1.85%
Free cash flow margin 11.28% (1.22%) 3.12%
Return on equity (241.41%) 2.78% 3.07%
Return on assets 31.07% 0.87% 1.50%
Return on invested capital 119.24% 2.91% 3.14%

Growth

Metric NATH PTLO Restaurants median
Revenue growth (TTM) 12.44% 2.89% 5.16%
EPS growth (last fiscal year) (17.38%) (41.30%) —
Revenue growth, 5-year CAGR 16.40% 9.96% 10.57%
Net income growth, 5-year CAGR 12.57% 0.00% 0.00%

Health

Metric NATH PTLO Restaurants median
Debt to equity (6.64) 0.47 0.10
Current ratio 2.45 0.26 0.81
Net debt to EBITDA 0.76 3.05 0.43

Dividend

Metric NATH PTLO Restaurants median
Dividend yield 3.03% — 2.32%
Payout ratio 0.39 0.00 0.00

Size

Metric NATH PTLO Restaurants median
Market cap 406.16m 274.16m 482.66m

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