Financial Comparison: Red Robin Gourmet Burgers (NASDAQ:RRGB) vs. Giggles N’ Hugs (OTCMKTS:GIGL)

Red Robin Gourmet Burgers (NASDAQ:RRGB) and Giggles N’ Hugs (OTCMKTS:GIGL) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Volatility and Risk

Red Robin Gourmet Burgers has a beta of 2.48, indicating that its stock price is 148% more volatile than the S&P 500. Comparatively, Giggles N’ Hugs has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Insider & Institutional Ownership

84.0% of Red Robin Gourmet Burgers shares are held by institutional investors. 4.1% of Red Robin Gourmet Burgers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Red Robin Gourmet Burgers and Giggles N’ Hugs”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Robin Gourmet Burgers	$1.21 billion	0.10	-$23.28 million	($1.50)	-4.51
Giggles N’ Hugs	N/A	N/A	N/A	N/A	N/A

Giggles N’ Hugs has lower revenue, but higher earnings than Red Robin Gourmet Burgers.

Analyst Recommendations

This is a summary of recent recommendations for Red Robin Gourmet Burgers and Giggles N’ Hugs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Robin Gourmet Burgers	1	1	2	0	2.25
Giggles N’ Hugs	0	0	0	0	0.00

Red Robin Gourmet Burgers currently has a consensus price target of $7.67, suggesting a potential upside of 13.41%. Given Red Robin Gourmet Burgers’ stronger consensus rating and higher probable upside, analysts clearly believe Red Robin Gourmet Burgers is more favorable than Giggles N’ Hugs.

Profitability

This table compares Red Robin Gourmet Burgers and Giggles N’ Hugs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Robin Gourmet Burgers	-2.23%	N/A	-2.20%
Giggles N’ Hugs	N/A	N/A	N/A

Summary

Red Robin Gourmet Burgers beats Giggles N’ Hugs on 7 of the 9 factors compared between the two stocks.

About Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.

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.