Giggles N’ Hugs (OTCMKTS:GIGL) versus Papa John’s International (NASDAQ:PZZA) Head to Head Comparison

Giggles N’ Hugs (OTCMKTS:GIGL) and Papa John’s International (NASDAQ:PZZA) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Earnings and Valuation

This table compares Giggles N’ Hugs and Papa John’s International”s gross revenue, earnings per share 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
Papa John’s International	$2.09 billion	0.73	$83.49 million	$2.26	20.61

Papa John’s International has higher revenue and earnings than Giggles N’ Hugs.

Analyst Recommendations

This is a summary of current recommendations and price targets for Giggles N’ Hugs and Papa John’s International, 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
Papa John’s International	0	8	4	0	2.33

Papa John’s International has a consensus target price of $50.00, suggesting a potential upside of 7.37%. Given Papa John’s International’s stronger consensus rating and higher possible upside, analysts clearly believe Papa John’s International is more favorable than Giggles N’ Hugs.

Risk and Volatility

Giggles N’ Hugs has a beta of -1.68, suggesting that its stock price is 268% less volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Giggles N’ Hugs and Papa John’s International’s 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
Papa John’s International	3.58%	-14.42%	6.78%

Dividends

Giggles N’ Hugs pays an annual dividend of $0.59 per share and has a dividend yield of 1.2%. Papa John’s International pays an annual dividend of $1.84 per share and has a dividend yield of 4.0%. Papa John’s International pays out 81.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Papa John’s International has raised its dividend for 4 consecutive years. Papa John’s International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Papa John’s International beats Giggles N’ Hugs on 9 of the 11 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 Papa John’s International

Papa John’s International, Inc. engages in the operation and franchise of pizza delivery and carryout restaurants. It operates through the following segments: Domestic Company-owned Restaurants, North America Franchising, North America Commissaries, International Operations, and All Others. The Domestic Company-Owned Restaurants segment consists of retail sales of pizza and side items, breadsticks, cheese sticks, chicken poppers and wings, dessert items, and canned and bottled beverages. The North America Franchising segment involves the offering of sales and support activities, development rights, and collection of royalties from franchisees located in the United States and Canada. The North America Commissaries segment includes the eleven full-service regional dough production and distribution and quality control centers. The International Operations segment represents all restaurant operations outside of the United States and Canada. The All Others segment focuses on franchise contributions to marketing funds and sale, company-owned and franchised restaurants, information systems and related services used in restaurant operations, point-of-sale system, online and other technology-based ordering platforms, printing, and promotional items. The company was founded by John H. Schnatter in 1984 and is headquartered in Louisville, KY.