Kona Grill (OTCMKTS:KONAQ) and CAVA Group (NYSE:CAVA) Head to Head Analysis

Kona Grill (OTCMKTS:KONAQ) and CAVA Group (NYSE:CAVA) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

73.2% of CAVA Group shares are held by institutional investors. 31.5% of Kona Grill shares are held by insiders. Comparatively, 12.1% of CAVA Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Kona Grill and CAVA Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kona Grill	N/A	N/A	N/A
CAVA Group	5.04%	7.37%	4.25%

Risk and Volatility

Kona Grill has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, CAVA Group has a beta of 3.33, suggesting that its stock price is 233% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kona Grill and CAVA Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kona Grill	$156.94 million	0.00	-$31.97 million	N/A	N/A
CAVA Group	$845.22 million	18.31	$13.28 million	$0.41	330.98

CAVA Group has higher revenue and earnings than Kona Grill.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kona Grill and CAVA Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kona Grill	0	0	0	0	N/A
CAVA Group	0	8	8	0	2.50

CAVA Group has a consensus target price of $115.64, suggesting a potential downside of 14.56%.

Summary

CAVA Group beats Kona Grill on 8 of the 9 factors compared between the two stocks.

About Kona Grill

Kona Grill, Inc. owns and operates upscale casual restaurants under the Kona Grill brand name. As of April 30, 2019, it operated 27 full-service restaurants in the United States. On April 30, 2019, Kona Grill, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company is based in Scottsdale, Arizona.

About CAVA Group

CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.