Reviewing iPic Entertainment (OTCMKTS:IPIC) and McDonald’s (NYSE:MCD)

iPic Entertainment (OTCMKTS:IPIC) and McDonald’s (NYSE:MCD) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

70.3% of McDonald’s shares are held by institutional investors. 50.7% of iPic Entertainment shares are held by company insiders. Comparatively, 0.3% of McDonald’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

iPic Entertainment has a beta of -2.08, indicating that its stock price is 308% less volatile than the S&P 500. Comparatively, McDonald’s has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Valuation and Earnings

This table compares iPic Entertainment and McDonald’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iPic Entertainment	N/A	N/A	N/A	N/A	N/A
McDonald’s	$26.89 billion	8.68	$8.56 billion	$11.95	27.41

McDonald’s has higher revenue and earnings than iPic Entertainment.

Analyst Ratings

This is a summary of recent ratings and price targets for iPic Entertainment and McDonald’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iPic Entertainment	0	0	0	0	0.00
McDonald’s	2	14	15	0	2.42

McDonald’s has a consensus target price of $337.04, suggesting a potential upside of 2.89%. Given McDonald’s’ stronger consensus rating and higher probable upside, analysts clearly believe McDonald’s is more favorable than iPic Entertainment.

Profitability

This table compares iPic Entertainment and McDonald’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
iPic Entertainment	N/A	N/A	N/A
McDonald’s	31.85%	-343.90%	14.82%

Summary

McDonald’s beats iPic Entertainment on 8 of the 10 factors compared between the two stocks.

About iPic Entertainment

iPic Entertainment Inc. operates restaurants and theaters in the United States. The company operates casual restaurants, farm-to-glass full-service bars, and theater auditoriums with in-theater dining. It operates restaurants under the City Perch Kitchen + Bar, Tanzy, The Tuck Room, The Tuck Room Tavern, and iPic Express brands. It operates screens in Arizona, California, Florida, Illinois, Maryland, New Jersey, New York, Texas, and Washington. The company was founded in 2010 and is headquartered in Boca Raton, Florida.

About McDonald’s

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K. The International Developmental Licensed Markets and Corporate segment consists of developmental licensee and affiliate markets in the McDonald’s system. The firm’s products include Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, McDonald’s Fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages, and other beverages. The company was founded by Raymond Albert Kroc on April 15, 1955, and is headquartered in Oak Brook, IL.