Head-To-Head Comparison: Rave Restaurant Group (NASDAQ:RAVE) vs. Giggles N’ Hugs (OTCMKTS:GIGL)

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

Volatility and Risk

Rave Restaurant Group has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Giggles N’ Hugs has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rave Restaurant Group and Giggles N’ Hugs”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rave Restaurant Group	$12.04 million	3.43	$2.70 million	$0.20	14.55
Giggles N’ Hugs	N/A	N/A	N/A	N/A	N/A

Rave Restaurant Group has higher revenue and earnings than Giggles N’ Hugs.

Insider & Institutional Ownership

15.1% of Rave Restaurant Group shares are owned by institutional investors. 28.0% of Rave Restaurant Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rave Restaurant Group	23.12%	20.11%	17.26%
Giggles N’ Hugs	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Rave Restaurant Group and Giggles N’ Hugs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rave Restaurant Group	0	1	0	0	2.00
Giggles N’ Hugs	0	0	0	0	0.00

Summary

Rave Restaurant Group beats Giggles N’ Hugs on 8 of the 8 factors compared between the two stocks.

About Rave Restaurant Group

Rave Restaurant Group, Inc., together with its subsidiaries, engages in the operation and franchising of pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn and Pie Five trademarks in the United States and internationally. The company operates through three segments: Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants. Its buffet restaurants are located in free standing buildings or strip centers in retail developments that offer dine-in, carryout, and catering services, as well as delivery services. The company’s delco restaurants provide delivery and carryout services and are located in shopping centers or other in-line retail developments. Its Express restaurants serve customers through various non-traditional points of sale and are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. The company’s Pizza Inn Express restaurants serve customers through a non-traditional, licensed, pizza-only model called Pizza Inn Express, located at production-oriented facilities. In addition, it operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademarks. The company was formerly known as Pizza Inn Holdings, Inc. and changed its name to Rave Restaurant Group, Inc. in January 2015. Rave Restaurant Group, Inc. was founded in 1958 and is based in The Colony, Texas.

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.