ONE Group Hospitality (NASDAQ:STKS – Get Free Report) and Dutch Bros (NYSE:BROS – Get Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
Risk & Volatility
ONE Group Hospitality has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.55, meaning that its stock price is 155% more volatile than the S&P 500.
Profitability
This table compares ONE Group Hospitality and Dutch Bros’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ONE Group Hospitality | -10.21% | 181.12% | 1.76% |
| Dutch Bros | 4.04% | 8.91% | 2.64% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Group Hospitality | 2 | 2 | 2 | 1 | 2.29 |
| Dutch Bros | 0 | 4 | 17 | 3 | 2.96 |
ONE Group Hospitality currently has a consensus target price of $4.63, indicating a potential upside of 137.79%. Dutch Bros has a consensus target price of $76.11, indicating a potential upside of 25.91%. Given ONE Group Hospitality’s higher probable upside, equities analysts clearly believe ONE Group Hospitality is more favorable than Dutch Bros.
Valuation & Earnings
This table compares ONE Group Hospitality and Dutch Bros”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Group Hospitality | $820.59 million | 0.07 | -$15.82 million | ($3.73) | -0.52 |
| Dutch Bros | $1.28 billion | 7.76 | $35.26 million | $0.50 | 120.90 |
Dutch Bros has higher revenue and earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
29.1% of ONE Group Hospitality shares are owned by institutional investors. Comparatively, 85.5% of Dutch Bros shares are owned by institutional investors. 25.1% of ONE Group Hospitality shares are owned by insiders. Comparatively, 42.4% of Dutch Bros shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Dutch Bros beats ONE Group Hospitality on 13 of the 15 factors compared between the two stocks.
About ONE Group Hospitality
The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.
About Dutch Bros
Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.
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