Wingstop (NASDAQ: STKS) and One Group Hospitality (NASDAQ:STKS) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Wingstop pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. One Group Hospitality does not pay a dividend. Wingstop pays out 37.8% of its earnings in the form of a dividend.
Wingstop has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, One Group Hospitality has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.
Earnings & Valuation
This table compares Wingstop and One Group Hospitality’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wingstop||$105.55 million||18.57||$27.30 million||$0.74||90.47|
|One Group Hospitality||$79.80 million||1.09||-$4.21 million||N/A||N/A|
Wingstop has higher revenue and earnings than One Group Hospitality.
This is a summary of recent recommendations and price targets for Wingstop and One Group Hospitality, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Group Hospitality||0||0||1||0||3.00|
Wingstop currently has a consensus price target of $55.69, indicating a potential downside of 16.82%. One Group Hospitality has a consensus price target of $4.00, indicating a potential upside of 26.98%. Given One Group Hospitality’s stronger consensus rating and higher probable upside, analysts clearly believe One Group Hospitality is more favorable than Wingstop.
This table compares Wingstop 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||-1.37%||-12.08%||-1.44%|
Insider & Institutional Ownership
5.6% of One Group Hospitality shares are held by institutional investors. 1.8% of Wingstop shares are held by insiders. Comparatively, 37.4% of One Group Hospitality shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Wingstop beats One Group Hospitality on 8 of the 14 factors compared between the two stocks.
Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Its restaurants offer cooked-to-order, hand-sauced, and tossed chicken wings. As of February 22, 2018, the company operated approximately 1,000 restaurants the United States, Mexico, Singapore, the Philippines, Indonesia, the United Arab Emirates, Malaysia, Saudi Arabia, and Colombia. Wingstop Inc. was founded in 1994 and is headquartered in Dallas, Texas.
About One Group Hospitality
The ONE Group Hospitality, Inc., a hospitality company, develops, owns, and operates restaurants and lounges worldwide. It operates in three segments: Owned Restaurants; Owned Food, Beverage and Other; and Managed and Licensed Operations. 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. The company operates restaurants primarily under the STK brand. As of December 31, 2017, it owned, operated, or managed or licensed 31 venues in the United States, Europe, and the Middle East. The company was founded in 2004 and is headquartered in New York, New York.
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