Financial Analysis: Bloomin’ Brands (NASDAQ:BLMN) versus Giggles N’ Hugs (OTCMKTS:GIGL)

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

Profitability

This table compares Giggles N’ Hugs and Bloomin’ Brands’ 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
Bloomin’ Brands	-1.46%	33.92%	3.25%

Analyst Recommendations

This is a breakdown of current recommendations for Giggles N’ Hugs and Bloomin’ Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giggles N’ Hugs	0	0	0	0	0.00
Bloomin’ Brands	2	7	0	0	1.78

Bloomin’ Brands has a consensus price target of $9.19, suggesting a potential upside of 40.37%. Given Bloomin’ Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Bloomin’ Brands is more favorable than Giggles N’ Hugs.

Dividends

Giggles N’ Hugs pays an annual dividend of $0.90 per share and has a dividend yield of 1.8%. Bloomin’ Brands pays an annual dividend of $0.60 per share and has a dividend yield of 9.2%. Bloomin’ Brands pays out -89.6% of its earnings in the form of a dividend.

Volatility & Risk

Giggles N’ Hugs has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Bloomin’ Brands has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Earnings and Valuation

This table compares Giggles N’ Hugs and Bloomin’ Brands”s revenue, earnings per share 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
Bloomin’ Brands	$3.95 billion	0.14	-$128.02 million	($0.67)	-9.77

Giggles N’ Hugs has higher earnings, but lower revenue than Bloomin’ Brands.

Summary

Bloomin’ Brands beats Giggles N’ Hugs on 8 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 Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.