Contrasting FAT Brands (NASDAQ:FAT) & Latitude 360 (OTCMKTS:LATX)

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

Earnings & Valuation

This table compares FAT Brands and Latitude 360″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FAT Brands	$592.65 million	0.01	-$189.85 million	($13.35)	-0.03
Latitude 360	N/A	N/A	N/A	N/A	N/A

Latitude 360 has lower revenue, but higher earnings than FAT Brands.

Institutional & Insider Ownership

6.9% of FAT Brands shares are owned by institutional investors. 15.7% of FAT Brands shares are owned by company insiders. Comparatively, 24.5% of Latitude 360 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for FAT Brands and Latitude 360, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FAT Brands	1	2	1	0	2.00
Latitude 360	0	0	0	0	0.00

FAT Brands currently has a consensus price target of $10.00, indicating a potential upside of 2,820.56%. Given FAT Brands’ stronger consensus rating and higher probable upside, research analysts plainly believe FAT Brands is more favorable than Latitude 360.

Profitability

This table compares FAT Brands and Latitude 360’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FAT Brands	-39.33%	N/A	-17.99%
Latitude 360	N/A	N/A	N/A

Summary

FAT Brands beats Latitude 360 on 5 of the 8 factors compared between the two stocks.

About FAT Brands

FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Holdings, LLC.

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.