Ruby Tuesday (NYSE: RT) and The ONE Group Hospitality (NASDAQ:STKS) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
This table compares Ruby Tuesday and The ONE Group Hospitality’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The ONE Group Hospitality||-25.48%||-68.30%||-7.44%|
This table compares Ruby Tuesday and The ONE Group Hospitality’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ruby Tuesday||$951.97 million||0.15||-$106.14 million||($1.26)||-1.91|
|The ONE Group Hospitality||$72.41 million||0.86||-$16.68 million||($0.79)||-3.13|
The ONE Group Hospitality has lower revenue, but higher earnings than Ruby Tuesday. The ONE Group Hospitality is trading at a lower price-to-earnings ratio than Ruby Tuesday, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ruby Tuesday has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, The ONE Group Hospitality has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.
Institutional & Insider Ownership
77.3% of Ruby Tuesday shares are owned by institutional investors. Comparatively, 14.5% of The ONE Group Hospitality shares are owned by institutional investors. 4.8% of Ruby Tuesday shares are owned by insiders. Comparatively, 35.9% of The ONE Group Hospitality shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Ruby Tuesday and The ONE Group Hospitality, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The ONE Group Hospitality||0||0||0||0||N/A|
About Ruby Tuesday
Ruby Tuesday, Inc. owns and operates Ruby Tuesday casual dining and Lime Fresh Mexican Grill (Lime Fresh) casual restaurants. The Company also franchises the Ruby Tuesday concept in selected domestic and international markets, and the Lime Fresh concept in selected domestic markets. Its segments include Ruby Tuesday concept and Lime Fresh concept. As of March 1, 2016, the Company operated 729 Ruby Tuesday restaurants in 44 states, 13 foreign countries, and Guam, and there were 16 Lime Fresh restaurants in two states. Of those restaurants, it owned and operated approximately 649 Ruby Tuesday restaurants and franchised over 80 Ruby Tuesday restaurants, which consisted of 28 domestic and 52 international restaurants. It also owned and operated over eight Lime Fresh restaurants and franchised eight Lime Fresh domestic restaurants. The Company’s corporate-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic and Midwest of the United States.
About The ONE Group Hospitality
The ONE Group Hospitality, Inc., formerly Committed Capital Acquisition Corporation, is a hospitality company. The Company develops, owns and operates restaurants and lounges, and provides food and beverage services for hospitality venues, including hotels, casinos and other locations across the globe. It operates through three segments: owned STK units (STKs), F&B hospitality management agreements (F&B), and Other concepts (Other). Its STKs segment consists of leased restaurant locations. Its F&B segment consists of management agreements, in which the Company operates the food and beverage services in hotels or casinos and could include an STK. Its Other segment includes owned non-STK leased locations. Its restaurant brand is STK, a multi-unit steakhouse concept with locations in metropolitan cities around the globe. Its F&B hospitality management services include developing, managing and operating restaurants, bars, rooftop lounges, pools, banqueting and catering facilities.
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