ONE Group Hospitality (NASDAQ:STKS – Get Rating) and Kona Grill (OTCMKTS:KONAQ – Get Rating) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.
Valuation & Earnings
This table compares ONE Group Hospitality and Kona Grill’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Group Hospitality | $325.01 million | 0.77 | $13.53 million | $0.37 | 21.19 |
| Kona Grill | $156.94 million | 0.00 | -$31.97 million | N/A | N/A |
ONE Group Hospitality has higher revenue and earnings than Kona Grill.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Group Hospitality | 0 | 1 | 2 | 0 | 2.67 |
| Kona Grill | 0 | 0 | 0 | 0 | N/A |
ONE Group Hospitality presently has a consensus target price of $12.00, suggesting a potential upside of 53.06%.
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 | 3.84% | 24.76% | 6.43% |
| Kona Grill | N/A | N/A | N/A |
Institutional & Insider Ownership
39.9% of ONE Group Hospitality shares are held by institutional investors. 19.3% of ONE Group Hospitality shares are held by insiders. Comparatively, 31.5% of Kona Grill shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
ONE Group Hospitality has a beta of 2.23, indicating that its stock price is 123% more volatile than the S&P 500. Comparatively, Kona Grill has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.
Summary
ONE Group Hospitality beats Kona Grill on 8 of the 9 factors compared between the two stocks.
About ONE Group Hospitality
The ONE Group Hospitality, Inc. engages in the development, owning, and management of restaurants and lounges. It operates through the following segments: STK, Kona Grill, ONE Hospitality and Corporate. The STK segment consists of the results of operations from STK restaurant locations, competing in the full-service dining industry, as well as management, license. The Kona Grill segment includes the results of operations of Kona Grill restaurant location. The ONE Hospitality segment is comprised of the management, license and incentive fee revenue and results of operations generated from its other brands and venue concepts, which include ANGEL, Bagatelle, Heliot, Hideout, Marconi, and Radio. The Corporate segment consists of general and administrative costs, stock-based compensation, depreciation and amortization, acquisition related gains and losses, pre-opening expenses, lease termination expenses, transaction costs, and other income and expenses. The company was founded by Jonathan Segal on December 3, 2004 and is headquartered in Denver, CO.
About Kona Grill
Kona Grill, Inc. owns and operates upscale casual restaurants under the Kona Grill brand name. As of April 30, 2019, it operated 27 full-service restaurants in the United States. On April 30, 2019, Kona Grill, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company is based in Scottsdale, Arizona.
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