Potbelly Corporation (NASDAQ:PBPB) & One Group Hospitality (STKS) Critical Review
Potbelly Corporation (NASDAQ: PBPB) and One Group Hospitality (OTCMKTS:STKS) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitabiliy, valuation and analyst recommendations.
This table compares Potbelly Corporation 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||-2.41%||-14.95%||-3.67%|
Institutional and Insider Ownership
73.0% of Potbelly Corporation shares are held by institutional investors. 9.6% of Potbelly Corporation 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.
Earnings & Valuation
This table compares Potbelly Corporation and One Group Hospitality’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Potbelly Corporation||$412.88 million||0.66||$41.97 million||$0.17||64.42|
|One Group Hospitality||$76.45 million||0.64||-$1.30 million||N/A||N/A|
Potbelly Corporation has higher revenue and earnings than One Group Hospitality.
This is a summary of recent ratings and price targets for Potbelly Corporation and One Group Hospitality, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|One Group Hospitality||0||0||0||0||N/A|
Potbelly Corporation currently has a consensus price target of $11.00, indicating a potential upside of 0.46%. Given Potbelly Corporation’s higher probable upside, equities research analysts plainly believe Potbelly Corporation is more favorable than One Group Hospitality.
Potbelly Corporation beats One Group Hospitality on 9 of the 9 factors compared between the two stocks.
About Potbelly Corporation
Potbelly Corporation owns and operates Potbelly Sandwich Works sandwich shops in the United States. The Company has domestic and international franchise operations of Potbelly Sandwich Works sandwich shops. As of December 25, 2016, the Company operated Potbelly Sandwich Works sandwich shops in 29 states and the District of Columbia. As of December 25, 2016, the Company had a domestic base of 441 shops in 29 states and the District of Columbia. Of these, the company operated 411 shops, and franchisees operated 30 shops, as of December 25, 2016. As of December 25, 2016, the Company had 13 international franchised shops, which included 11 shops in the Middle East, a shop in the United Kingdom and a shop in Canada. As of December 25, 2016, the Company had domestic franchise shops in Arkansas, Iowa, Illinois, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Texas and Virginia.
About One Group Hospitality
The ONE Group Hospitality, Inc., formerly Committed Capital Acquisition Corporation, is a hospitality company. The Company develops, owns and operates restaurants and lounges, and provides food and beverage services for hospitality venues, including hotels, casinos and other locations across the globe. It operates through three segments: owned STK units (STKs), F&B hospitality management agreements (F&B), and Other concepts (Other). Its STKs segment consists of leased restaurant locations. Its F&B segment consists of management agreements, in which the Company operates the food and beverage services in hotels or casinos and could include an STK. Its Other segment includes owned non-STK leased locations. Its restaurant brand is STK, a multi-unit steakhouse concept with locations in metropolitan cities around the globe. Its F&B hospitality management services include developing, managing and operating restaurants, bars, rooftop lounges, pools, banqueting and catering facilities.
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