Rave Restaurant Group (RAVE) & Alkaline Water (WTER) Critical Contrast

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

Insider and Institutional Ownership

4.6% of Rave Restaurant Group shares are held by institutional investors. 51.7% of Rave Restaurant Group shares are held by insiders. Comparatively, 5.9% of Alkaline Water shares are held by 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.

Earnings & Valuation

This table compares Rave Restaurant Group and Alkaline Water’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rave Restaurant Group $15.12 million 1.28 $1.91 million N/A N/A
Alkaline Water $19.81 million 7.62 -$6.68 million N/A N/A

Rave Restaurant Group has higher earnings, but lower revenue than Alkaline Water.

Profitability

This table compares Rave Restaurant Group and Alkaline Water’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rave Restaurant Group 18.58% 65.94% 30.37%
Alkaline Water -22.16% -263.88% -76.52%

Risk and Volatility

Rave Restaurant Group has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Alkaline Water has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Rave Restaurant Group and Alkaline Water, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rave Restaurant Group 0 0 0 0 N/A
Alkaline Water 0 0 0 0 N/A

Summary

Rave Restaurant Group beats Alkaline Water on 6 of the 9 factors compared between the two stocks.

About Rave Restaurant Group

Rave Restaurant Group, Inc., together with its subsidiaries, operates and franchises pizza buffet, delivery/carry-out (delco), and express restaurants under the Pizza Inn trademark. It operates in Pizza Inn Franchising, Pie Five Franchising, and Company-Owned Restaurants segments. The company's 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. Its delco restaurants provide delivery and carryout services that are located in shopping centers or other in-line retail developments. The company's Express restaurants serve customers through various non-traditional points of sale that are located in convenience stores, food courts, college campuses, airport terminals, travel plazas, athletic facilities, or other commercial facilities. Rave Restaurant Group, Inc. also operates and franchises fast casual restaurants under the Pie Five Pizza Company or Pie Five trademark. As of September 24, 2018, it owned, operated, and franchised approximately 284 Pie Five Pizza Co. and Pizza Inn restaurants in the United States and internationally. 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 Alkaline Water

The Alkaline Water Company Inc. produces, distributes, and markets bottled alkaline water in the United States. The company offers bottled alkaline water in various volumes under the Alkaline88 trade name. It sells its products through brokers and distributors to retailers, such as convenience stores, natural food products stores, large ethnic markets, and national retailers. The company was incorporated in 2011 and is headquartered in Scottsdale, Arizona.

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