Analyzing Noble Roman’s (OTCMKTS:NROM) & Sweetgreen (NYSE:SG)

Noble Roman’s (OTCMKTS:NROM) and Sweetgreen (NYSE:SG) are both small-cap retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

95.8% of Sweetgreen shares are held by institutional investors. 25.1% of Noble Roman’s shares are held by company insiders. Comparatively, 21.5% of Sweetgreen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Noble Roman’s and Sweetgreen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Noble Roman’s	0	0	0	0	0.00
Sweetgreen	0	6	8	0	2.57

Sweetgreen has a consensus target price of $28.31, suggesting a potential upside of 130.42%. Given Sweetgreen’s stronger consensus rating and higher probable upside, analysts plainly believe Sweetgreen is more favorable than Noble Roman’s.

Profitability

This table compares Noble Roman’s and Sweetgreen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Noble Roman’s	-0.03%	-0.14%	-0.02%
Sweetgreen	-13.04%	-19.72%	-10.49%

Earnings and Valuation

This table compares Noble Roman’s and Sweetgreen”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Noble Roman’s	$15.15 million	0.31	$666,480.00	$0.03	6.99
Sweetgreen	$676.83 million	2.13	-$90.37 million	($0.77)	-15.95

Noble Roman’s has higher earnings, but lower revenue than Sweetgreen. Sweetgreen is trading at a lower price-to-earnings ratio than Noble Roman’s, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Noble Roman’s has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Sweetgreen has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500.

About Noble Roman’s

Noble Roman's, Inc. sells and services franchises, and licenses and operates foodservice locations for stand-alone restaurants and non-traditional foodservice operations. The company franchises, licenses, and operates foodservice locations under the Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs trade names, which provide breadsticks and cheesy stix with dip, pizza, pasta, salads, wings, baked sandwiches, and other related breakfast products, as well as a selection of desserts. The company was incorporated in 1972 and is headquartered in Indianapolis, Indiana.

About Sweetgreen

Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.