Ruth’s Hospitality Group (NASDAQ:RUTH) and Ark Restaurants (NASDAQ:ARKR) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Insider and Institutional Ownership
82.9% of Ruth’s Hospitality Group shares are owned by institutional investors. Comparatively, 24.3% of Ark Restaurants shares are owned by institutional investors. 7.2% of Ruth’s Hospitality Group shares are owned by insiders. Comparatively, 41.6% of Ark Restaurants shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Ruth’s Hospitality Group has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Ark Restaurants has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
This table compares Ruth’s Hospitality Group and Ark Restaurants’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ruth’s Hospitality Group||9.14%||44.15%||12.34%|
Earnings and Valuation
This table compares Ruth’s Hospitality Group and Ark Restaurants’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ruth’s Hospitality Group||$452.33 million||1.30||$41.68 million||$1.39||14.09|
|Ark Restaurants||$159.99 million||0.45||$4.65 million||N/A||N/A|
Ruth’s Hospitality Group has higher revenue and earnings than Ark Restaurants.
This is a breakdown of recent ratings and price targets for Ruth’s Hospitality Group and Ark Restaurants, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ruth’s Hospitality Group||0||2||1||0||2.33|
Ruth’s Hospitality Group currently has a consensus target price of $26.00, indicating a potential upside of 32.79%. Given Ruth’s Hospitality Group’s higher probable upside, equities analysts plainly believe Ruth’s Hospitality Group is more favorable than Ark Restaurants.
Ruth’s Hospitality Group pays an annual dividend of $0.52 per share and has a dividend yield of 2.7%. Ark Restaurants pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. Ruth’s Hospitality Group pays out 37.4% of its earnings in the form of a dividend.
Ruth’s Hospitality Group beats Ark Restaurants on 11 of the 14 factors compared between the two stocks.
About Ruth’s Hospitality Group
Ruth's Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants under the Ruth's Chris Steak House name. Its restaurants offer food and beverage products to special occasion diners and frequent customers, as well as business clientele. As of February 22, 2019, the company had approximately 150 company-owned and franchisee-owned restaurants worldwide. Ruth's Hospitality Group, Inc. was founded in 1965 and is headquartered in Winter Park, Florida.
About Ark Restaurants
Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of September 29, 2018, it owned and/or operated 20 restaurants and bars, including 5 facilities located in New York City; 2 in Washington, D.C.; 5 in Las Vegas, Nevada; 3 in Atlantic City, New Jersey; 1 in the Faneuil Hall Marketplace in Boston, Massachusetts; 2 on the east coast of Florida; and 2 on the gulf coast of Alabama, as well as had 19 fast food concepts and catering operations. The company was founded in 1983 and is based in New York, New York.
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