Cheesecake Factory (NASDAQ:CAKE) and iPic Entertainment (OTCMKTS:IPIC) Financial Analysis

iPic Entertainment (OTCMKTS:IPIC) and Cheesecake Factory (NASDAQ:CAKE) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

94.5% of Cheesecake Factory shares are owned by institutional investors. 50.7% of iPic Entertainment shares are owned by insiders. Comparatively, 8.4% of Cheesecake Factory shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iPic Entertainment	N/A	N/A	N/A
Cheesecake Factory	3.96%	45.68%	5.73%

Valuation and Earnings

This table compares iPic Entertainment and Cheesecake Factory”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iPic Entertainment	N/A	N/A	N/A	N/A	N/A
Cheesecake Factory	$3.75 billion	0.73	$148.43 million	$3.07	17.99

Cheesecake Factory has higher revenue and earnings than iPic Entertainment.

Risk and Volatility

iPic Entertainment has a beta of -2.08, indicating that its stock price is 308% less volatile than the S&P 500. Comparatively, Cheesecake Factory has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for iPic Entertainment and Cheesecake Factory, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iPic Entertainment	0	0	0	0	0.00
Cheesecake Factory	4	7	6	0	2.12

Cheesecake Factory has a consensus target price of $61.81, indicating a potential upside of 11.92%. Given Cheesecake Factory’s stronger consensus rating and higher probable upside, analysts clearly believe Cheesecake Factory is more favorable than iPic Entertainment.

Summary

Cheesecake Factory beats iPic Entertainment on 9 of the 10 factors compared between the two stocks.

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.

About Cheesecake Factory

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. It operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.