Chuy’s (NASDAQ:CHUY) vs. Kura Sushi USA (NASDAQ:KRUS) Critical Analysis

Chuy’s (NASDAQ:CHUYGet Rating) and Kura Sushi USA (NASDAQ:KRUSGet Rating) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Chuy’s and Kura Sushi USA, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chuy’s 0 2 3 0 2.60
Kura Sushi USA 0 0 6 0 3.00

Chuy’s currently has a consensus target price of $37.83, suggesting a potential upside of 43.63%. Kura Sushi USA has a consensus target price of $69.80, suggesting a potential upside of 29.69%. Given Chuy’s’ higher probable upside, equities research analysts clearly believe Chuy’s is more favorable than Kura Sushi USA.

Profitability

This table compares Chuy’s and Kura Sushi USA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chuy’s 7.61% 14.62% 7.57%
Kura Sushi USA -2.99% -11.80% -5.40%

Earnings & Valuation

This table compares Chuy’s and Kura Sushi USA’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chuy’s $396.47 million 1.26 $30.18 million $1.50 17.56
Kura Sushi USA $64.89 million 8.06 -$10.30 million ($0.32) -168.19

Chuy’s has higher revenue and earnings than Kura Sushi USA. Kura Sushi USA is trading at a lower price-to-earnings ratio than Chuy’s, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Chuy’s has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Kura Sushi USA has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500.

Insider and Institutional Ownership

98.0% of Chuy’s shares are owned by institutional investors. Comparatively, 32.8% of Kura Sushi USA shares are owned by institutional investors. 1.0% of Chuy’s shares are owned by insiders. Comparatively, 1.4% of Kura Sushi USA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Chuy’s beats Kura Sushi USA on 9 of the 14 factors compared between the two stocks.

About Chuy’s (Get Rating)

Chuy's Holdings, Inc., through its subsidiaries, owns and operates full-service restaurants under the Chuy's name in the United States. As of December 26, 2021, it operated 96 restaurants in 17 states, including the Southeastern and Midwestern United States. The company was founded in 1982 and is headquartered in Austin, Texas.

About Kura Sushi USA (Get Rating)

Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States. The company's restaurants provide Japanese cuisine through an engaging revolving sushi service model, which is known as ‘Kura Experience'. As of August 31, 2021, it operated 33 restaurants in nine states and Washington DC. The company was formerly known as Kula Sushi USA, Inc. and changed its name to Kura Sushi USA, Inc. in October 2017. The company was founded in 2008 and is headquartered in Irvine, California. Kura Sushi USA, Inc. is a subsidiary of Kura Sushi, Inc.

Receive News & Ratings for Chuy's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chuy's and related companies with MarketBeat.com's FREE daily email newsletter.