Comparing Dutch Bros (NYSE:BROS) & ONE Group Hospitality (NASDAQ:STKS)

Dutch Bros (NYSE:BROS) and ONE Group Hospitality (NASDAQ:STKS) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Volatility and Risk

Dutch Bros has a beta of 2.55, indicating that its share price is 155% more volatile than the S&P 500. Comparatively, ONE Group Hospitality has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Valuation and Earnings

This table compares Dutch Bros and ONE Group Hospitality”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.28 billion	7.76	$35.26 million	$0.50	120.90
ONE Group Hospitality	$820.59 million	0.07	-$15.82 million	($3.73)	-0.52

Dutch Bros has higher revenue and earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

85.5% of Dutch Bros shares are owned by institutional investors. Comparatively, 29.1% of ONE Group Hospitality shares are owned by institutional investors. 42.4% of Dutch Bros shares are owned by insiders. Comparatively, 25.1% of ONE Group Hospitality shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Dutch Bros and ONE Group Hospitality, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	4	17	3	2.96
ONE Group Hospitality	2	2	2	1	2.29

Dutch Bros presently has a consensus price target of $76.11, suggesting a potential upside of 25.91%. ONE Group Hospitality has a consensus price target of $4.63, suggesting a potential upside of 137.79%. Given ONE Group Hospitality’s higher possible upside, analysts clearly believe ONE Group Hospitality is more favorable than Dutch Bros.

Profitability

This table compares Dutch Bros and ONE Group Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.04%	8.91%	2.64%
ONE Group Hospitality	-10.21%	181.12%	1.76%

Summary

Dutch Bros beats ONE Group Hospitality on 13 of the 15 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

About ONE Group Hospitality

The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.