Ark Restaurants (NASDAQ:ARKR) & Giggles N’ Hugs (OTCMKTS:GIGL) Financial Review

Giggles N’ Hugs (OTCMKTS:GIGL) and Ark Restaurants (NASDAQ:ARKR) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Giggles N’ Hugs and Ark Restaurants, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giggles N’ Hugs	0	0	0	0	0.00
Ark Restaurants	1	0	0	0	1.00

Volatility & Risk

Giggles N’ Hugs has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Ark Restaurants has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Institutional and Insider Ownership

32.0% of Ark Restaurants shares are held by institutional investors. 37.5% of Ark Restaurants shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Giggles N’ Hugs pays an annual dividend of $1.26 per share and has a dividend yield of 2.5%. Ark Restaurants pays an annual dividend of $0.18 per share and has a dividend yield of 2.6%. Ark Restaurants pays out -4.7% of its earnings in the form of a dividend.

Profitability

This table compares Giggles N’ Hugs and Ark Restaurants’ 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
Ark Restaurants	-8.50%	-19.60%	-4.94%

Valuation and Earnings

This table compares Giggles N’ Hugs and Ark Restaurants”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
Ark Restaurants	$165.75 million	0.15	-$11.47 million	($3.81)	-1.81

Giggles N’ Hugs has higher earnings, but lower revenue than Ark Restaurants.

Summary

Ark Restaurants beats Giggles N’ Hugs on 7 of the 10 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 Ark Restaurants

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. It operates restaurants in New York City; Washington, D.C.; Las Vegas, Nevada; Atlantic City, New Jersey; Florida; and Alabama, as well as fast food concepts and catering operations. The company was incorporated in 1983 and is based in New York, New York.