Cheesecake Factory (NASDAQ:CAKE) & iPic Entertainment (OTCMKTS:IPIC) Critical Contrast

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

Profitability

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

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

Earnings and Valuation

This table compares Cheesecake Factory and iPic Entertainment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cheesecake Factory	$3.75 billion	0.83	$148.43 million	$3.07	20.42
iPic Entertainment	N/A	N/A	N/A	N/A	N/A

Cheesecake Factory has higher revenue and earnings than iPic Entertainment.

Risk and Volatility

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a summary of recent recommendations for Cheesecake Factory and iPic Entertainment, as provided by MarketBeat.com.

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

Cheesecake Factory currently has a consensus target price of $61.88, suggesting a potential downside of 1.28%. Given iPic Entertainment’s higher possible upside, analysts plainly believe iPic Entertainment is more favorable than Cheesecake Factory.

Summary

Cheesecake Factory beats iPic Entertainment on 8 of the 10 factors compared between the two stocks.

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.

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.