Head-To-Head Review: Chipotle Mexican Grill (NYSE:CMG) & Kura Sushi USA (NYSE:KRUS)

Kura Sushi USA (NASDAQ:KRUS) and Chipotle Mexican Grill (NYSE:CMG) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Kura Sushi USA and Chipotle Mexican Grill’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kura Sushi USA $64.25 million 1.97 $1.46 million $0.27 56.19
Chipotle Mexican Grill $5.59 billion 6.40 $350.16 million $14.05 90.92

Chipotle Mexican Grill has higher revenue and earnings than Kura Sushi USA. Kura Sushi USA is trading at a lower price-to-earnings ratio than Chipotle Mexican Grill, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

35.0% of Kura Sushi USA shares are owned by institutional investors. Comparatively, 92.0% of Chipotle Mexican Grill shares are owned by institutional investors. 1.1% of Kura Sushi USA shares are owned by company insiders. Comparatively, 1.0% of Chipotle Mexican Grill shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Kura Sushi USA and Chipotle Mexican Grill’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kura Sushi USA -16.43% -16.12% -8.85%
Chipotle Mexican Grill 4.55% 17.24% 5.59%

Analyst Recommendations

This is a summary of recent ratings for Kura Sushi USA and Chipotle Mexican Grill, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kura Sushi USA 1 1 5 0 2.57
Chipotle Mexican Grill 0 17 15 1 2.52

Kura Sushi USA presently has a consensus price target of $20.67, indicating a potential upside of 36.23%. Chipotle Mexican Grill has a consensus price target of $1,153.06, indicating a potential downside of 9.73%. Given Kura Sushi USA’s stronger consensus rating and higher probable upside, research analysts clearly believe Kura Sushi USA is more favorable than Chipotle Mexican Grill.

Summary

Chipotle Mexican Grill beats Kura Sushi USA on 11 of the 14 factors compared between the two stocks.

About Kura Sushi USA

Kura Sushi USA, Inc. operates revolving sushi bar restaurants in the United States. The company's restaurants offer Japanese cuisine and a revolving sushi service model. As of April 1, 2019, it operated 21 restaurants in California, Texas, Georgia, and Illinois. The company was formerly known as Kula Sushi USA, Inc. and changed its name to Kura Sushi USA, Inc. in October 2017. The company was founded in 2008 and is based in Irvine, California. Kura Sushi USA, Inc. is a subsidiary of Kura Sushi, Inc.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., together with its subsidiaries, operates Chipotle Mexican Grill restaurants. As of December 31, 2018, it operated 2,491 restaurants, including 2,452 Chipotle restaurants in the United States, 37 Chipotle restaurants internationally, and two non-Chipotle restaurants. The company was founded in 1993 and is headquartered in Newport Beach, California.

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