Critical Survey: FAT Brands (NASDAQ:FATBB) versus Gold Reserve (OTCMKTS:GDRZF)
by Mitch Edgeman · The Markets DailyFAT Brands (NASDAQ:FATBB – Get Free Report) and Gold Reserve (OTCMKTS:GDRZF – Get Free Report) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Profitability
This table compares FAT Brands and Gold Reserve’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FAT Brands | -39.33% | N/A | -17.57% |
| Gold Reserve | N/A | -38.79% | -32.72% |
Analyst Ratings
This is a breakdown of recent recommendations for FAT Brands and Gold Reserve, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FAT Brands | 1 | 0 | 0 | 0 | 1.00 |
| Gold Reserve | 0 | 0 | 1 | 0 | 3.00 |
Valuation and Earnings
This table compares FAT Brands and Gold Reserve”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FAT Brands | $574.14 million | 0.03 | -$189.85 million | ($13.35) | -0.07 |
| Gold Reserve | $3.21 million | 233.08 | -$34.28 million | ($0.29) | -17.47 |
Gold Reserve has lower revenue, but higher earnings than FAT Brands. Gold Reserve is trading at a lower price-to-earnings ratio than FAT Brands, indicating that it is currently the more affordable of the two stocks.
Summary
Gold Reserve beats FAT Brands on 6 of the 10 factors compared between the two stocks.
About FAT Brands
FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.
About Gold Reserve
Gold Reserve Inc., an exploration stage company, engages in evaluating, acquiring, exploring, and developing mineral properties. It also holds interests in LMS Gold project located in Alaska, the United States. The company was founded in 1956 and is based in Spokane, Washington.