Morgans Hotel Group (NASDAQ: MHGC) and Bravo Brio Restaurant Group (NASDAQ:BBRG) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitabiliy, institutional ownership, analyst recommendations, risk, earnings and dividends.

Profitability

This table compares Morgans Hotel Group and Bravo Brio Restaurant Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Morgans Hotel Group -17.23% N/A -6.56%
Bravo Brio Restaurant Group -18.18% 116.93% 1.81%

Earnings & Valuation

This table compares Morgans Hotel Group and Bravo Brio Restaurant Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Morgans Hotel Group N/A N/A N/A $0.23 9.35
Bravo Brio Restaurant Group $408.17 million 0.12 $19.65 million ($4.99) -0.62

Bravo Brio Restaurant Group has higher revenue and earnings than Morgans Hotel Group. Bravo Brio Restaurant Group is trading at a lower price-to-earnings ratio than Morgans Hotel Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Morgans Hotel Group has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Bravo Brio Restaurant Group has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

33.2% of Morgans Hotel Group shares are held by institutional investors. Comparatively, 58.5% of Bravo Brio Restaurant Group shares are held by institutional investors. 1.8% of Morgans Hotel Group shares are held by company insiders. Comparatively, 7.5% of Bravo Brio Restaurant Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Morgans Hotel Group and Bravo Brio Restaurant Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Morgans Hotel Group 0 0 0 0 N/A
Bravo Brio Restaurant Group 0 1 0 0 2.00

Summary

Bravo Brio Restaurant Group beats Morgans Hotel Group on 5 of the 8 factors compared between the two stocks.

About Morgans Hotel Group

Morgans Hotel Group Co. is a lifestyle hospitality company. The Company operates, owns, licenses and develops boutique hotels, primarily in gateway cities and select resort markets in the United States, Europe and other international locations. Its portfolio of Morgans Hotel Group branded hotel properties and food and beverage operations and entities consists of its over three owned hotels, including Hudson in New York, Delano South Beach in Miami Beach and Clift in San Francisco; its owned food and beverage operations consisting of leasehold interests in the food and beverage operations located at Sanderson, in London; its unconsolidated Joint Venture Hotel, including Mondrian South Beach in Miami Beach; its over seven Managed Hotels consisting of Royalton and Morgans in New York, Shore Club in Miami Beach, Mondrian in Los Angeles, and Sanderson, St Martins Lane and Mondrian London in London, and its licensed hotel, Delano Las Vegas, and its franchised hotel, 10 Karakoy, in Istanbul.

About Bravo Brio Restaurant Group

Bravo Brio Restaurant Group, Inc. is the owner and operator of approximately two Italian restaurant brands, including BRAVO! Cucina Italiana (BRAVO!) and BRIO Tuscan Grille (BRIO). The Company operates approximately 120 restaurants in over 30 states. Additionally, approximately one BRIO restaurant is operated under a franchise agreement. It has over 110 operating locations, owns approximately four locations, of which over 100 are located adjacent to or in lifestyle centers and shopping malls, and over 10 are free-standing units. Its reward programs, called MyBRAVO Rewards and MyBRIO Rewards, are designed to reward guests for their continuous dining at its restaurants. Its guests can download a MyBRAVO/MyBRIO! Rewards mobile application, register their cards at BRAVO! and BRIO locations or online at www.myBRAVOReward.com or www.myBRIOReward.com. It also operates approximately one full-service American-French bistro restaurant in Columbus, Ohio under the brand Bon Vie.

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