Financial Comparison: Pinstripes (NYSE:PNST) versus Shake Shack (NYSE:SHAK)

Shake Shack (NYSE:SHAK) and Pinstripes (NYSE:PNST) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Shake Shack and Pinstripes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shake Shack	1	10	7	1	2.42
Pinstripes	0	0	3	0	3.00

Shake Shack currently has a consensus price target of $106.37, indicating a potential upside of 10.66%. Pinstripes has a consensus price target of $4.50, indicating a potential upside of 164.71%. Given Pinstripes’ stronger consensus rating and higher probable upside, analysts plainly believe Pinstripes is more favorable than Shake Shack.

Profitability

This table compares Shake Shack and Pinstripes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shake Shack	2.23%	5.63%	1.63%
Pinstripes	N/A	N/A	-8.99%

Risk and Volatility

Shake Shack has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, Pinstripes has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500.

Valuation & Earnings

This table compares Shake Shack and Pinstripes’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shake Shack	$1.09 billion	3.75	$20.26 million	$0.55	174.77
Pinstripes	$118.72 million	0.57	-$6.79 million	N/A	N/A

Shake Shack has higher revenue and earnings than Pinstripes.

Institutional and Insider Ownership

86.1% of Shake Shack shares are held by institutional investors. Comparatively, 56.8% of Pinstripes shares are held by institutional investors. 9.7% of Shake Shack shares are held by company insiders. Comparatively, 22.8% of Pinstripes shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Shake Shack beats Pinstripes on 10 of the 13 factors compared between the two stocks.

About Shake Shack

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.

About Pinstripes

Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.