Meritage Hospitality Group (OTCMKTS:MHGU – Get Free Report) and Sweetgreen (NYSE:SG – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Volatility and Risk
Meritage Hospitality Group has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500. Comparatively, Sweetgreen has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Meritage Hospitality Group and Sweetgreen, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Meritage Hospitality Group | 0 | 0 | 0 | 0 | 0.00 |
| Sweetgreen | 3 | 12 | 4 | 0 | 2.05 |
Earnings and Valuation
This table compares Meritage Hospitality Group and Sweetgreen”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Meritage Hospitality Group | $617.67 million | 0.02 | -$31.75 million | ($5.81) | -0.29 |
| Sweetgreen | $679.47 million | 1.80 | -$134.07 million | $0.12 | 85.54 |
Meritage Hospitality Group has higher earnings, but lower revenue than Sweetgreen. Meritage Hospitality Group is trading at a lower price-to-earnings ratio than Sweetgreen, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Meritage Hospitality Group and Sweetgreen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Meritage Hospitality Group | -6.23% | -26.70% | -3.69% |
| Sweetgreen | 2.49% | -33.07% | -16.37% |
Insider & Institutional Ownership
95.8% of Sweetgreen shares are held by institutional investors. 67.8% of Meritage Hospitality Group shares are held by insiders. Comparatively, 19.8% of Sweetgreen shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Sweetgreen beats Meritage Hospitality Group on 10 of the 14 factors compared between the two stocks.
About Meritage Hospitality Group
Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Morning Belle, and Stan's Tacos, as well as Taco John's brand names in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. It is also involved in franchising activities. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was incorporated in 1986 and is based in Grand Rapids, Michigan.
About Sweetgreen
Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.
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