Reviewing Giggles N Hugs (OTCMKTS:GIGL) and Luckin Coffee (OTCMKTS:LK)

Giggles N Hugs (OTCMKTS:GIGL) and Luckin Coffee (NASDAQ:LK) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Giggles N Hugs -25.05% N/A -52.63%
Luckin Coffee N/A N/A N/A

Insider and Institutional Ownership

37.1% of Luckin Coffee shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Giggles N Hugs and Luckin Coffee’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Giggles N Hugs $2.43 million 0.11 -$690,000.00 N/A N/A
Luckin Coffee $125.27 million 2.59 -$241.26 million N/A N/A

Giggles N Hugs has higher earnings, but lower revenue than Luckin Coffee.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Giggles N Hugs and Luckin Coffee, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Giggles N Hugs 0 0 0 0 N/A
Luckin Coffee 0 1 2 0 2.67

Luckin Coffee has a consensus price target of $46.00, suggesting a potential upside of 3,233.33%. Given Luckin Coffee’s higher possible upside, analysts clearly believe Luckin Coffee is more favorable than Giggles N Hugs.

Summary

Luckin Coffee beats Giggles N Hugs on 7 of the 8 factors compared between the two stocks.

Giggles N Hugs Company Profile

Giggles N' Hugs, Inc. owns and operates kid-friendly restaurants with play areas for children in 10 years and younger in California. It owns and operates a restaurant in the Westfield Topanga shopping center in Woodland Hills; and a restaurant in the Glendale Galleria in Glendale, California. The company was formerly known as Teacher's Pet, Inc. and changed its name to Giggles N' Hugs, Inc. in August 2010. Giggles N' Hugs, Inc. was founded in 2004 and is headquartered in Glendale, California.

Luckin Coffee Company Profile

Luckin Coffee Inc. engages in the retail sale of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers freshly brewed drinks, including freshly brewed coffee and non-coffee drinks; and food and beverage items, such as light meals. The company operates pick-up stores, relax stores, and delivery kitchens under the Luckin brand, as well as Luckin mobile app, Weixin mini-program, and other third-party platforms that cover the customer purchase process. As of March 31, 2019, it operated 2,370 stores, including 2,163 pick-up stores, 109 relax stores, and 98 delivery kitchens in 28 cities in the People's Republic of China. The company was founded in 2017 and is based in Xiamen, the People's Republic of China.

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