Critical Analysis: iPic Entertainment (OTCMKTS:IPIC) versus Nathan’s Famous (NASDAQ:NATH)

Nathan’s Famous (NASDAQ:NATH) and iPic Entertainment (OTCMKTS:IPIC) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Valuation & Earnings

This table compares Nathan’s Famous and iPic Entertainment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nathan’s Famous	$148.18 million	2.68	$24.03 million	$5.55	17.47
iPic Entertainment	N/A	N/A	N/A	N/A	N/A

Nathan’s Famous has higher revenue and earnings than iPic Entertainment.

Risk & Volatility

Nathan’s Famous has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, iPic Entertainment has a beta of -1.88, meaning that its share price is 288% less volatile than the S&P 500.

Profitability

This table compares Nathan’s Famous and iPic Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nathan’s Famous	14.74%	-180.07%	39.99%
iPic Entertainment	N/A	N/A	N/A

Institutional and Insider Ownership

66.5% of Nathan’s Famous shares are held by institutional investors. 30.7% of Nathan’s Famous shares are held by company insiders. Comparatively, 50.7% of iPic Entertainment shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Nathan’s Famous and iPic Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nathan’s Famous	0	0	1	0	3.00
iPic Entertainment	0	0	0	0	0.00

Given iPic Entertainment’s higher probable upside, analysts plainly believe iPic Entertainment is more favorable than Nathan’s Famous.

Summary

Nathan’s Famous beats iPic Entertainment on 7 of the 10 factors compared between the two stocks.

About Nathan’s Famous

Nathan’s Famous, Inc. engages in the operation of franchised fast-food units. It is involved in the licensing, wholesaling, and retailing of products marketed under the Nathan’s Famous brand. The firm operates through the following business segments: Branded Product Program, Product Licensing, Restaurant Operations, and Corporate. The Branded Product Program segment markets and sells hot dog products. The Product Licensing segment is composed of royalties from licensing a variety of Nathan’s Famous products such as hotdogs, sausage and corned beef products, frozen French fries, and additional products through retail grocery channels and club stores. The Restaurant Operations segment deals with the sale of products at company-owned restaurants and fees and royalties from franchised restaurants. The Corporate segment includes administrative expenses such as executive management, finance, information technology, legal, insurance, corporate office costs, corporate incentive compensation, and compliance costs. The company was founded by Nathan Handwerker in 1916 and is headquartered in Jericho, NY.

About iPic Entertainment

iPic Entertainment Inc. operates restaurants and theaters in the United States. The company operates casual restaurants, farm-to-glass full-service bars, and theater auditoriums with in-theater dining. It operates restaurants under the City Perch Kitchen + Bar, Tanzy, The Tuck Room, The Tuck Room Tavern, and iPic Express brands. It operates screens in Arizona, California, Florida, Illinois, Maryland, New Jersey, New York, Texas, and Washington. The company was founded in 2010 and is headquartered in Boca Raton, Florida.