Analyzing Kura Sushi USA (NASDAQ:KRUS) and Latitude 360 (OTCMKTS:LATX)

Kura Sushi USA (NASDAQ:KRUS) and Latitude 360 (OTCMKTS:LATX) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kura Sushi USA and Latitude 360, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kura Sushi USA	1	5	5	0	2.36
Latitude 360	0	0	0	0	0.00

Kura Sushi USA presently has a consensus target price of $90.30, suggesting a potential upside of 40.04%. Given Kura Sushi USA’s stronger consensus rating and higher probable upside, research analysts clearly believe Kura Sushi USA is more favorable than Latitude 360.

Earnings and Valuation

This table compares Kura Sushi USA and Latitude 360″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kura Sushi USA	$237.86 million	3.28	-$8.80 million	($0.80)	-80.60
Latitude 360	N/A	N/A	N/A	N/A	N/A

Latitude 360 has lower revenue, but higher earnings than Kura Sushi USA.

Institutional & Insider Ownership

65.5% of Kura Sushi USA shares are owned by institutional investors. 2.3% of Kura Sushi USA shares are owned by insiders. Comparatively, 24.5% of Latitude 360 shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Kura Sushi USA and Latitude 360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kura Sushi USA	-3.48%	-0.49%	-0.27%
Latitude 360	N/A	N/A	N/A

Summary

Kura Sushi USA beats Latitude 360 on 5 of the 9 factors compared between the two stocks.

About Kura Sushi USA

Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States. 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.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.