Cannae (NYSE:CNNE) and Giggles N Hugs (OTCMKTS:GIGL) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

80.6% of Cannae shares are held by institutional investors. 4.9% of Cannae 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.

Valuation and Earnings

This table compares Cannae and Giggles N Hugs’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cannae $1.17 billion 1.04 $108.80 million $1.54 11.04
Giggles N Hugs $2.45 million 0.63 -$1.62 million N/A N/A

Cannae has higher revenue and earnings than Giggles N Hugs.

Analyst Recommendations

This is a summary of current ratings for Cannae and Giggles N Hugs, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cannae 0 0 1 0 3.00
Giggles N Hugs 0 0 0 0 N/A

Cannae presently has a consensus target price of $25.00, suggesting a potential upside of 47.06%. Given Cannae’s higher probable upside, research analysts plainly believe Cannae is more favorable than Giggles N Hugs.

Profitability

This table compares Cannae and Giggles N Hugs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cannae -1.99% -2.08% -1.74%
Giggles N Hugs -35.15% N/A -103.44%

Risk & Volatility

Cannae has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Giggles N Hugs has a beta of 7.58, suggesting that its stock price is 658% more volatile than the S&P 500.

Summary

Cannae beats Giggles N Hugs on 9 of the 11 factors compared between the two stocks.

Cannae Company Profile

Cannae Holdings, Inc is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. is based in Las Vegas, Nevada.

Giggles N Hugs Company Profile

Giggles N' Hugs, Inc. owns and operates kid-friendly restaurants with play areas for children in 10 years and younger in California. It owns and operates a restaurant in the Westfield Topanga shopping center in Woodland Hills; and a restaurant in the Glendale Galleria in Glendale, California. The company was formerly known as Teacher's Pet, Inc. and changed its name to Giggles N' Hugs, Inc. in August 2010. Giggles N' Hugs, Inc. was founded in 2004 and is headquartered in Glendale, California.

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