Fiesta Restaurant Group (NASDAQ:FRGI – Get Rating) and Sweetgreen (NYSE:SG – Get Rating) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
Risk and Volatility
Fiesta Restaurant Group has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Sweetgreen has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.
Valuation and Earnings
This table compares Fiesta Restaurant Group and Sweetgreen’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fiesta Restaurant Group | $387.35 million | 0.51 | -$14.56 million | ($0.61) | -12.43 |
| Sweetgreen | $470.11 million | 2.32 | -$190.44 million | ($1.53) | -6.39 |
Insider and Institutional Ownership
86.9% of Fiesta Restaurant Group shares are owned by institutional investors. Comparatively, 84.3% of Sweetgreen shares are owned by institutional investors. 3.1% of Fiesta Restaurant Group shares are owned by company insiders. Comparatively, 22.0% of Sweetgreen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Fiesta Restaurant Group and Sweetgreen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fiesta Restaurant Group | -3.82% | -4.02% | -1.66% |
| Sweetgreen | -34.58% | -28.08% | -19.63% |
Analyst Recommendations
This is a breakdown of current recommendations for Fiesta Restaurant Group and Sweetgreen, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fiesta Restaurant Group | 0 | 0 | 1 | 0 | 3.00 |
| Sweetgreen | 0 | 4 | 1 | 0 | 2.20 |
Fiesta Restaurant Group currently has a consensus price target of $13.00, indicating a potential upside of 71.50%. Sweetgreen has a consensus price target of $10.67, indicating a potential upside of 9.18%. Given Fiesta Restaurant Group’s stronger consensus rating and higher probable upside, analysts clearly believe Fiesta Restaurant Group is more favorable than Sweetgreen.
Summary
Fiesta Restaurant Group beats Sweetgreen on 9 of the 13 factors compared between the two stocks.
About Fiesta Restaurant Group
Fiesta Restaurant Group, Inc. is a holding company, which engages in the acquisition, operation, and franchising of fast-casual restaurants. It operates through the Pollo Tropical and Other segments. The Pollo Tropical segment offers fire-grilled and crispy citrus marinated chicken and other freshly prepared tropical-inspired menu items. The Other segment includes corporate-owned property and equipment, advisory fees, and corporate. The company was founded in April 2011 and is headquartered in Dallas, TX.
About Sweetgreen
Sweetgreen, Inc., together with its subsidiaries, develops and operates fast-casual restaurants serving healthy foods prepared from seasonal and organic ingredients. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that can be redeemed in its restaurants. As of September 26, 2021, it owned and operated 140 restaurants in 13 states and Washington, D.C. The company was founded in 2006 and is headquartered in Los Angeles, California.
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