Head to Head Comparison: One Group Hospitality (STKS) versus Kona Grill (KONA)

One Group Hospitality (NASDAQ: STKS) and Kona Grill (NASDAQ:KONA) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares One Group Hospitality and Kona Grill’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
One Group Hospitality -25.48% -68.30% -7.44%
Kona Grill -15.32% -55.38% -12.50%

Risk and Volatility

One Group Hospitality has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Kona Grill has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Institutional and Insider Ownership

14.5% of One Group Hospitality shares are held by institutional investors. Comparatively, 37.2% of Kona Grill shares are held by institutional investors. 35.9% of One Group Hospitality shares are held by insiders. Comparatively, 29.2% of Kona Grill shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares One Group Hospitality and Kona Grill’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
One Group Hospitality $72.41 million 0.81 -$16.68 million ($0.80) -2.91
Kona Grill $169.52 million 0.10 -$21.62 million ($2.67) -0.66

One Group Hospitality has higher earnings, but lower revenue than Kona Grill. One Group Hospitality is trading at a lower price-to-earnings ratio than Kona Grill, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for One Group Hospitality and Kona Grill, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
One Group Hospitality 0 0 0 0 N/A
Kona Grill 0 2 3 0 2.60

Kona Grill has a consensus target price of $6.17, suggesting a potential upside of 252.38%. Given Kona Grill’s higher probable upside, analysts clearly believe Kona Grill is more favorable than One Group Hospitality.

Summary

Kona Grill beats One Group Hospitality on 7 of the 13 factors compared between the two stocks.

About 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.

About Kona Grill

Kona Grill, Inc. owns and operates upscale casual dining restaurants under the name Kona Grill. The Company owns and operates approximately 40 restaurants in 20 states throughout the United States and Puerto Rico. Its high-volume upscale casual restaurants feature a global menu of contemporary American favorites and sushi. Its menu items are prepared from scratch at each restaurant location and incorporate over 40 signature sauces and dressings. It also offers a full service bar offering a range assortment of wines, specialty cocktails and beers. Its restaurants seat an average of approximately 290 customers and comprise multiple dining areas. Its dining area, full-service bar, indoor/outdoor patio and sushi bar provide a choice of atmospheres and a range of environments. It locates its restaurants in various areas, such as retail centers, shopping malls, urban entertainment districts and lifestyle centers that are situated near commercial office space and residential housing.

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