This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

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) versus San Antonio's Clear Channel Outdoor (CCO). 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.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs