ONE Group Hospitality (NASDAQ:STKS – Get Free Report) and United Parks & Resorts (NYSE:PRKS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk & Volatility
ONE Group Hospitality has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.
Profitability
This table compares ONE Group Hospitality and United Parks & Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ONE Group Hospitality | -10.25% | -10.49% | -0.62% |
| United Parks & Resorts | 8.11% | -27.85% | 5.04% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Group Hospitality | $805.72 million | 0.06 | -$92.24 million | ($3.80) | -0.43 |
| United Parks & Resorts | $1.66 billion | 0.97 | $168.35 million | $2.54 | 14.07 |
United Parks & Resorts has higher revenue and earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than United Parks & Resorts, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for ONE Group Hospitality and United Parks & Resorts, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Group Hospitality | 2 | 1 | 1 | 0 | 1.75 |
| United Parks & Resorts | 1 | 9 | 4 | 0 | 2.21 |
ONE Group Hospitality currently has a consensus price target of $4.00, suggesting a potential upside of 146.91%. United Parks & Resorts has a consensus price target of $46.90, suggesting a potential upside of 31.25%. Given ONE Group Hospitality’s higher probable upside, equities research analysts plainly believe ONE Group Hospitality is more favorable than United Parks & Resorts.
Insider and Institutional Ownership
29.1% of ONE Group Hospitality shares are held by institutional investors. 25.7% of ONE Group Hospitality shares are held by insiders. Comparatively, 1.7% of United Parks & Resorts shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
United Parks & Resorts beats ONE Group Hospitality on 9 of the 14 factors compared between the two stocks.
About ONE Group Hospitality
The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.
About United Parks & Resorts
United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.
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