Critical Comparison: Dine Brands Global (NYSE:DIN) and Kona Grill (OTCMKTS:KONAQ)

Dine Brands Global (NYSE:DINGet Rating) and Kona Grill (OTCMKTS:KONAQGet Rating) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Profitability

This table compares Dine Brands Global and Kona Grill’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dine Brands Global 9.62% -36.73% 5.31%
Kona Grill N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings for Dine Brands Global and Kona Grill, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dine Brands Global 0 0 8 0 3.00
Kona Grill 0 0 0 0 N/A

Dine Brands Global presently has a consensus price target of $91.89, indicating a potential upside of 25.96%.

Insider & Institutional Ownership

99.7% of Dine Brands Global shares are held by institutional investors. 3.4% of Dine Brands Global shares are held by company insiders. Comparatively, 31.5% of Kona Grill shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Dine Brands Global and Kona Grill’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dine Brands Global $896.17 million 1.28 $97.86 million $5.36 13.61
Kona Grill $156.94 million 0.00 -$31.97 million N/A N/A

Dine Brands Global has higher revenue and earnings than Kona Grill.

Risk and Volatility

Dine Brands Global has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500. Comparatively, Kona Grill has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Summary

Dine Brands Global beats Kona Grill on 7 of the 9 factors compared between the two stocks.

About Dine Brands Global

(Get Rating)

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, operates, and rents full-service restaurants in the United States and internationally. It operates through five segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. The company owns and franchises two restaurant concepts, including Applebee's Neighborhood Grill + Bar in the bar and grill segment of the casual dining category; and IHOP in the family dining category of the restaurant industry. Its Applebee's restaurants offer American fare with drinks and drafts; and IHOP restaurants provide full table services, and food and beverage offerings. As of December 31, 2021, the company had 1,611 Applebee's franchised restaurants, and 1,751 IHOP franchised and area licensed restaurants. It is also involved in the lease or sublease of 598 IHOP franchised restaurants and two Applebee's franchised restaurants; and the financing of franchise fees and equipment leases. the company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Glendale, California.

About Kona Grill

(Get Rating)

Kona Grill, Inc. owns and operates upscale casual restaurants under the Kona Grill brand name. As of April 30, 2019, it operated 27 full-service restaurants in the United States. On April 30, 2019, Kona Grill, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company is based in Scottsdale, Arizona.

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