ONE Group Hospitality (NASDAQ:STKS – Get Free Report) and Rave Restaurant Group (NASDAQ:RAVE – Get Free Report) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Earnings and Valuation
This table compares ONE Group Hospitality and Rave Restaurant Group”s gross revenue, earnings per share and valuation.
Get ONE Group Hospitality alerts: Rave Restaurant Group has lower revenue, but higher earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than Rave Restaurant Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
29.1% of ONE Group Hospitality shares are owned by institutional investors. Comparatively, 15.1% of Rave Restaurant Group shares are owned by institutional investors. 25.1% of ONE Group Hospitality shares are owned by insiders. Comparatively, 27.7% of Rave Restaurant Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for ONE Group Hospitality and Rave Restaurant Group, as provided by MarketBeat.com.
ONE Group Hospitality currently has a consensus target price of $4.63, indicating a potential upside of 87.25%. Given ONE Group Hospitality’s stronger consensus rating and higher possible upside, research analysts plainly believe ONE Group Hospitality is more favorable than Rave Restaurant Group.
Risk and Volatility
ONE Group Hospitality has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Rave Restaurant Group has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.
Profitability
This table compares ONE Group Hospitality and Rave Restaurant Group’s net margins, return on equity and return on assets.
Summary
ONE Group Hospitality beats Rave Restaurant Group on 8 of the 15 factors compared between the two stocks.
About ONE Group Hospitality
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The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.
About Rave Restaurant Group
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Rave Restaurant Group, Inc., together with its subsidiaries, engages in the operation and franchising of pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn and Pie Five trademarks in the United States and internationally. The company operates through three segments: Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants. Its buffet restaurants are located in free standing buildings or strip centers in retail developments that offer dine-in, carryout, and catering services, as well as delivery services. The company’s delco restaurants provide delivery and carryout services and are located in shopping centers or other in-line retail developments. Its Express restaurants serve customers through various non-traditional points of sale and are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. The company’s Pizza Inn Express restaurants serve customers through a non-traditional, licensed, pizza-only model called Pizza Inn Express, located at production-oriented facilities. In addition, it operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.