Head to Head Analysis: Giggles N’ Hugs (OTCMKTS:GIGL) & Bloomin’ Brands (NASDAQ:BLMN)

Giggles N’ Hugs (OTCMKTS:GIGL) and Bloomin’ Brands (NASDAQ:BLMN) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Giggles N’ Hugs and Bloomin’ Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Giggles N’ Hugs	N/A	N/A	N/A	N/A	N/A
Bloomin’ Brands	$3.95 billion	0.14	-$128.02 million	($0.67)	-9.77

Giggles N’ Hugs has higher earnings, but lower revenue than Bloomin’ Brands.

Analyst Recommendations

This is a summary of current ratings and price targets for Giggles N’ Hugs and Bloomin’ Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giggles N’ Hugs	0	0	0	0	0.00
Bloomin’ Brands	2	7	0	0	1.78

Bloomin’ Brands has a consensus price target of $9.19, indicating a potential upside of 40.37%. Given Bloomin’ Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Bloomin’ Brands is more favorable than Giggles N’ Hugs.

Profitability

This table compares Giggles N’ Hugs and Bloomin’ Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Giggles N’ Hugs	N/A	N/A	N/A
Bloomin’ Brands	-1.46%	33.92%	3.25%

Volatility & Risk

Giggles N’ Hugs has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Bloomin’ Brands has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Dividends

Giggles N’ Hugs pays an annual dividend of $0.90 per share and has a dividend yield of 1.8%. Bloomin’ Brands pays an annual dividend of $0.60 per share and has a dividend yield of 9.2%. Bloomin’ Brands pays out -89.6% of its earnings in the form of a dividend.

Summary

Bloomin’ Brands beats Giggles N’ Hugs on 8 of the 9 factors compared between the two stocks.

About Giggles N’ Hugs

Giggles N’ Hugs, Inc. engages in the ownership and operation of restaurants. It offers an upscale family-friendly atmosphere with a play area dedicated to children ages 10 and younger. The restaurant has a menu made from fresh, organic foods with the play elements and entertainment. The company was founded by Joey Parsi and Dorsa Foroughi on September 17, 2004 and is headquartered in Los Angeles, CA.

About Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.