Contrasting Giggles N’ Hugs (OTCMKTS:GIGL) and BJ’s Restaurants (NASDAQ:BJRI)

Giggles N’ Hugs (OTCMKTS:GIGL) and BJ’s Restaurants (NASDAQ:BJRI) 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 analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares Giggles N’ Hugs and BJ’s Restaurants’ 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
BJ’s Restaurants	3.49%	13.77%	5.00%

Analyst Ratings

This is a summary of recent recommendations for Giggles N’ Hugs and BJ’s Restaurants, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giggles N’ Hugs	0	0	0	0	0.00
BJ’s Restaurants	2	5	2	0	2.00

BJ’s Restaurants has a consensus target price of $43.00, suggesting a potential upside of 13.19%. Given BJ’s Restaurants’ stronger consensus rating and higher possible upside, analysts clearly believe BJ’s Restaurants is more favorable than Giggles N’ Hugs.

Insider and Institutional Ownership

100.0% of BJ’s Restaurants shares are held by institutional investors. 4.3% of BJ’s Restaurants shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Giggles N’ Hugs has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, BJ’s Restaurants has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Valuation & Earnings

This table compares Giggles N’ Hugs and BJ’s Restaurants”s revenue, earnings per share (EPS) 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
BJ’s Restaurants	$1.40 billion	0.57	$16.69 million	$2.15	17.67

BJ’s Restaurants has higher revenue and earnings than Giggles N’ Hugs.

Summary

BJ’s Restaurants beats Giggles N’ Hugs on 10 of the 10 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 BJ’s Restaurants

BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. Its restaurants offer pizzas, craft and other beers, appetizers, entrées, pastas, sandwiches, specialty salads, and desserts under brand name Pizookie. The company was formerly known as Chicago Pizza & Brewery, Inc. and changed its name to BJ’s Restaurants, Inc. in August 2004. BJ’s Restaurants, Inc. was founded in 1978 and is based in Huntington Beach, California.