Habit Restaurants (NASDAQ: HABT) and One Group Hospitality (NASDAQ:STKS) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
This table compares Habit Restaurants and One Group Hospitality’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%|
Habit Restaurants has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, One Group Hospitality has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Insider & Institutional Ownership
76.9% of Habit Restaurants shares are held by institutional investors. Comparatively, 14.3% of One Group Hospitality shares are held by institutional investors. 16.1% of Habit Restaurants shares are held by insiders. Comparatively, 35.9% of One Group Hospitality shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Habit Restaurants and One Group Hospitality’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Habit Restaurants||$283.81 million||0.80||$4.66 million||$0.23||38.05|
|One Group Hospitality||$72.41 million||0.88||-$16.68 million||($0.80)||-3.16|
Habit Restaurants has higher revenue and earnings than One Group Hospitality. One Group Hospitality is trading at a lower price-to-earnings ratio than Habit Restaurants, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Habit Restaurants and One Group Hospitality, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Group Hospitality||0||0||0||0||N/A|
Habit Restaurants presently has a consensus price target of $15.94, indicating a potential upside of 82.14%. Given Habit Restaurants’ higher possible upside, research analysts plainly believe Habit Restaurants is more favorable than One Group Hospitality.
Habit Restaurants beats One Group Hospitality on 10 of the 13 factors compared between the two stocks.
About Habit Restaurants
The Habit Restaurants, Inc. (Habit Burger Grill) is a fast casual restaurant company. The Company is engaged in preparing made-to-order char-grilled burgers and sandwiches featuring tri-tip steak, grilled chicken and sushi-grade albacore tuna cooked over an open flame. In addition, it offers sides, shakes and malts. The Company prepares its burgers with char-grilled preparation, topped with caramelized onions, melted cheese, lettuce and tomatoes. It operates a range of restaurant formats, including end-cap, free-standing, inline, end-cap drive-thru and traditional stand-alone drive-in, primarily within suburban shopping centers and retail settings. As of December 27, 2016, the Company had 172 locations in 15 markets in 10 states and the United Arab Emirates, including franchised/licensed locations (excluding six licensed locations in Santa Barbara County, California).
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.
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