Head to Head Comparison: Giggles N’ Hugs (OTCMKTS:GIGL) versus Red Robin Gourmet Burgers (NASDAQ:RRGB)

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

Profitability

This table compares Giggles N’ Hugs and Red Robin Gourmet Burgers’ 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
Red Robin Gourmet Burgers	-2.23%	N/A	-2.20%

Earnings and Valuation

This table compares Giggles N’ Hugs and Red Robin Gourmet Burgers”s top-line 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
Red Robin Gourmet Burgers	$1.21 billion	0.10	-$23.28 million	($1.50)	-4.17

Giggles N’ Hugs has higher earnings, but lower revenue than Red Robin Gourmet Burgers.

Volatility and Risk

Giggles N’ Hugs has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 2.48, suggesting that its stock price is 148% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Giggles N’ Hugs and Red Robin Gourmet Burgers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giggles N’ Hugs	0	0	0	0	0.00
Red Robin Gourmet Burgers	1	1	2	0	2.25

Red Robin Gourmet Burgers has a consensus price target of $7.67, suggesting a potential upside of 22.47%. Given Red Robin Gourmet Burgers’ stronger consensus rating and higher probable upside, analysts plainly believe Red Robin Gourmet Burgers is more favorable than Giggles N’ Hugs.

Institutional and Insider Ownership

84.0% of Red Robin Gourmet Burgers shares are held by institutional investors. 4.1% of Red Robin Gourmet Burgers shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Red Robin Gourmet Burgers beats Giggles N’ Hugs on 7 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 Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.