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Cramer's 'Mad Money' Recap: Don't Fear the Fed

When it comes to same-store sales, it's also a wash, said Cramer, with both chains delivering low-single-digit growth. Red Robin may have the edge in the short term given that it's 100% domestic, but over the longer term Bloomin' might have the edge as it is more poised for international growth.

Other metrics including store openings and remodels also make it tough to compare the companies, which is why the ultimate decision has to come from comparing the stocks, Cramer said.

While both stocks have rallied 60% for the year, Red Robin currently trades at 22 times earnings with a 9.5% growth rate, pegging it at 2.3 times its growth rate. Meanwhile, Bloomin' trades at just 18 times earnings with a 16.7% growth rate, putting its shares at just one time its growth rate. Cramer reminded viewers that any time shares rise above twice the growth rate, they become risky.

That's why Cramer said he'd put his money with Bloomin' Brands.

Miami vs. San Antonio Specs

Continuing with his "Miami versus San Antonio" homage to the basketball finals, Cramer took a look at two speculative companies, Miami's Opko Health (OPK - Get Report) versus San Antonio's Clear Channel Outdoor (CCO - Get Report). He said that it might seem weird to compare a biotech against an advertising company, but both stocks trade at $7 a share and their market caps are almost identical.

Cramer said when comparing these two companies he used offense, defense, hustle, stamina and teamwork as his basketball-themed criteria. He said when it comes to offense, Clear Channel has growth potential in its new digital products, while Opko has virtually no offense until its prostate cancer test and other drugs come closer to fruition. One point to Clear Channel.

In the defense department, Cramer said both companies are speculative, with neither paying dividends or having any stock buybacks. That said, Opko is not economically sensitive like Clear Channel, giving the point to Opko.

For hustle, Cramer said Clear Channel is very bloated, with $4.5 billion in debt on its books, while in the stamina department, Opko wins thanks to a long track record of smart acquisitions helping the bottom line.
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BLMN $17.32 0.06%
CCO $5.25 0.00%
GCI $17.75 3.92%
OPK $11.09 1.37%
RRGB $65.72 -2.61%


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