Analyzing Kona Grill (KONA) and Noble Roman’s (OTCMKTS:NROM)

Kona Grill (NASDAQ:KONA) and Noble Roman’s (OTCMKTS:NROM) 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 valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

12.8% of Kona Grill shares are held by institutional investors. Comparatively, 0.3% of Noble Roman’s shares are held by institutional investors. 29.2% of Kona Grill shares are held by insiders. Comparatively, 30.1% of Noble Roman’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kona Grill and Noble Roman’s, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kona Grill 0 0 1 0 3.00
Noble Roman’s 0 0 0 0 N/A

Kona Grill presently has a consensus target price of $5.00, suggesting a potential upside of 197.62%. Given Kona Grill’s higher possible upside, equities analysts plainly believe Kona Grill is more favorable than Noble Roman’s.

Risk & Volatility

Kona Grill has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Noble Roman’s has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Kona Grill and Noble Roman’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kona Grill -12.77% -239.30% -13.64%
Noble Roman’s -22.62% -24.49% -14.29%

Valuation and Earnings

This table compares Kona Grill and Noble Roman’s’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kona Grill $179.08 million 0.12 -$23.43 million N/A N/A
Noble Roman’s $9.84 million 1.06 -$3.38 million N/A N/A

Noble Roman’s has lower revenue, but higher earnings than Kona Grill.

Summary

Kona Grill beats Noble Roman’s on 6 of the 11 factors compared between the two stocks.

Kona Grill Company Profile

Kona Grill, Inc. owns and operates upscale casual restaurants under the Kona Grill brand name. As of December 31, 2017, it owned and operated 46 restaurants in 23 states of the United States and Puerto Rico; and 3 franchised restaurants in Mexico, the United Arab Emirates, and Canada. The company is based in Scottsdale, Arizona.

Noble Roman’s Company Profile

Noble Roman's, Inc. sells and services franchises and licenses, and operates foodservice locations for non-traditional foodservice operations and stand-alone restaurants. The company franchises, licenses, and operates under the Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs trade names, which provide pizza, pasta, salads, sub sandwiches, and other related menu items. As of December 31, 2017, it operated 2,854 franchised or licensed outlets. The company has operations in 50 states of the United States. Noble Roman's, Inc. was incorporated in 1972 and is headquartered in Indianapolis, Indiana.

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