Comparing Giggles N’ Hugs (OTCMKTS:GIGL) & Red Robin Gourmet Burgers (NASDAQ:RRGB)

Giggles N’ Hugs (OTCMKTS:GIGL) and Red Robin Gourmet Burgers (NASDAQ:RRGB) 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 valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Giggles N’ Hugs	N/A	N/A	N/A	N/A	N/A
Red Robin Gourmet Burgers	$1.21 billion	0.11	-$23.28 million	($1.50)	-4.99

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

Institutional and Insider Ownership

84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. 4.1% of Red Robin Gourmet Burgers shares are owned 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.

Risk & Volatility

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

Analyst Ratings

This is a summary of current ratings and price targets for Giggles N’ Hugs and Red Robin Gourmet Burgers, as reported by MarketBeat.

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

Red Robin Gourmet Burgers has a consensus target price of $7.67, suggesting a potential upside of 2.36%. 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 Giggles N’ Hugs and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.

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

Summary

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

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.

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.