Giggles N Hugs (GIGL) and Shake Shack (SHAK) Financial Analysis

Giggles N Hugs (OTCMKTS:GIGL) and Shake Shack (NYSE:SHAK) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Volatility & Risk

Giggles N Hugs has a beta of 7.65, meaning that its stock price is 665% more volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Giggles N Hugs and Shake Shack’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Giggles N Hugs -35.15% N/A -103.44%
Shake Shack 0.40% 10.64% 5.00%

Insider & Institutional Ownership

92.2% of Shake Shack shares are held by institutional investors. 30.2% of Shake Shack shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Giggles N Hugs and Shake Shack, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Giggles N Hugs 0 0 0 0 N/A
Shake Shack 2 5 3 0 2.10

Shake Shack has a consensus target price of $54.67, suggesting a potential downside of 1.59%. Given Shake Shack’s higher possible upside, analysts plainly believe Shake Shack is more favorable than Giggles N Hugs.

Earnings & Valuation

This table compares Giggles N Hugs and Shake Shack’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Giggles N Hugs $2.45 million 0.65 -$1.62 million N/A N/A
Shake Shack $358.81 million 5.74 -$320,000.00 $0.57 97.46

Shake Shack has higher revenue and earnings than Giggles N Hugs.

Summary

Shake Shack beats Giggles N Hugs on 10 of the 11 factors compared between the two stocks.

Giggles N Hugs Company Profile

Giggles N' Hugs, Inc. owns and operates kid-friendly restaurants with play areas for children in 10 years and younger in California. It owns and operates a restaurant in the Westfield Topanga shopping center in Woodland Hills; and a restaurant in the Glendale Galleria in Glendale, California. The company was formerly known as Teacher's Pet, Inc. and changed its name to Giggles N' Hugs, Inc. in August 2010. Giggles N' Hugs, Inc. was founded in 2004 and is headquartered in Glendale, California.

Shake Shack Company Profile

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of October 9, 2018, it operated 180 locations in 26 U.S. States and the District of Columbia, including approximately 70 locations across London, Hong Kong, Istanbul, Dubai, Tokyo, Moscow, Seoul, and internationally. Shake Shack Inc. was founded in 2004 and is headquartered in New York, New York.

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