Reviewing BJ’s Restaurants (NASDAQ:BJRI) & Giggles N’ Hugs (OTCMKTS:GIGL)

BJ’s Restaurants (NASDAQ:BJRI) and Giggles N’ Hugs (OTCMKTS:GIGL) 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 institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Volatility and Risk

BJ’s Restaurants has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Giggles N’ Hugs has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares BJ’s Restaurants and Giggles N’ Hugs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BJ’s Restaurants	3.49%	13.77%	5.00%
Giggles N’ Hugs	N/A	N/A	N/A

Institutional and Insider Ownership

100.0% of BJ’s Restaurants shares are owned by institutional investors. 4.3% of BJ’s Restaurants shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BJ’s Restaurants and Giggles N’ Hugs”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BJ’s Restaurants	$1.40 billion	0.57	$16.69 million	$2.15	17.67
Giggles N’ Hugs	N/A	N/A	N/A	N/A	N/A

BJ’s Restaurants has higher revenue and earnings than Giggles N’ Hugs.

Analyst Recommendations

This is a summary of recent ratings for BJ’s Restaurants and Giggles N’ Hugs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BJ’s Restaurants	2	5	2	0	2.00
Giggles N’ Hugs	0	0	0	0	0.00

BJ’s Restaurants presently has a consensus target price of $43.00, suggesting a potential upside of 13.19%. Given BJ’s Restaurants’ stronger consensus rating and higher probable upside, equities research analysts clearly believe BJ’s Restaurants is more favorable than Giggles N’ Hugs.

Summary

BJ’s Restaurants beats Giggles N’ Hugs on 10 of the 10 factors compared between the two stocks.

About BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.

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.