Contrasting Rave Restaurant Group (RAVE) & Its Rivals

Rave Restaurant Group (NASDAQ:RAVE) is one of 383 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare Rave Restaurant Group to related companies based on the strength of its risk, institutional ownership, valuation, earnings, dividends, profitability and analyst recommendations.

Volatility and Risk

Rave Restaurant Group has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Rave Restaurant Group’s peers have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Profitability

This table compares Rave Restaurant Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rave Restaurant Group	22.26%	17.21%	15.31%
Rave Restaurant Group Competitors	8.51%	-42.06%	2.05%

Valuation and Earnings

This table compares Rave Restaurant Group and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rave Restaurant Group	$12.91 million	$2.88 million	10.05
Rave Restaurant Group Competitors	$3.42 billion	$250.18 million	-161.30

Rave Restaurant Group’s peers have higher revenue and earnings than Rave Restaurant Group. Rave Restaurant Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

15.1% of Rave Restaurant Group shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 28.2% of Rave Restaurant Group shares are owned by insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Rave Restaurant Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rave Restaurant Group	0	1	0	0	2.00
Rave Restaurant Group Competitors	3835	17324	25641	908	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 53.38%. Given Rave Restaurant Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe Rave Restaurant Group has less favorable growth aspects than its peers.

Summary

Rave Restaurant Group peers beat Rave Restaurant Group on 8 of the 13 factors compared.

Rave Restaurant Group Company Profile

Rave Restaurant Group, Inc. is a restaurant company that develops, operates, and franchises pizza concepts. Its primary brands are Pizza Inn and Pie Five Pizza Co., which serve customers through franchised and company-operated locations. Pizza Inn is the company’s traditional pizza brand, offering pizza, pasta, salads, desserts, and other menu items through buffet, carryout, delivery, and dine-in formats. Pie Five Pizza Co. is a fast-casual concept centered on individually crafted pizzas, allowing customers to select crusts, sauces, cheeses, and toppings before the pizza is baked.