Analyzing Latitude 360 (OTCMKTS:LATX) and Sweetgreen (NYSE:SG)

Latitude 360 (OTCMKTS:LATX) and Sweetgreen (NYSE:SG) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Latitude 360 and Sweetgreen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Latitude 360	0	0	0	0	0.00
Sweetgreen	0	8	6	0	2.43

Sweetgreen has a consensus target price of $17.6923, suggesting a potential upside of 90.10%. Given Sweetgreen’s stronger consensus rating and higher possible upside, analysts clearly believe Sweetgreen is more favorable than Latitude 360.

Profitability

This table compares Latitude 360 and Sweetgreen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Latitude 360	N/A	N/A	N/A
Sweetgreen	-14.29%	-22.21%	-11.60%

Valuation and Earnings

This table compares Latitude 360 and Sweetgreen”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Latitude 360	N/A	N/A	N/A	N/A	N/A
Sweetgreen	$676.83 million	1.63	-$90.37 million	($0.84)	-11.08

Latitude 360 has higher earnings, but lower revenue than Sweetgreen.

Institutional and Insider Ownership

95.8% of Sweetgreen shares are owned by institutional investors. 24.5% of Latitude 360 shares are owned by company insiders. Comparatively, 19.8% of Sweetgreen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Sweetgreen beats Latitude 360 on 5 of the 9 factors compared between the two stocks.

About Latitude 360

Latitude 360, Inc. operates as a casual dining restaurant/entertainment company in the United States. The company plans, develops, constructs, and operates restaurant/entertainment venues. Its restaurant/entertainment venues feature a grille and bar; luxury bowling lanes; a dine-in movie theater with home theater-style seating; game room; a dine-in live performance theater; a HD sports theater; a bar with a dance floor and stage for the DJs and regional bands every weekend; and a luxury boutique cigar lounge. The company operates three restaurant/entertainment venues in Jacksonville, Florida, Pittsburgh, Pennsylvania, and Indianapolis, Indiana. Its restaurant/entertainment venues serve consumers and corporate clients. The company is headquartered in Jacksonville, Florida. On January 10, 2017, an involuntary petition for reorganization under Chapter 11 was filed against Latitude 360, Inc. in the U.S. Bankruptcy Court for the Middle District of Florida. On February 7, 2017, the involuntary petition was approved by the Court.

About Sweetgreen

Sweetgreen, Inc., together with its subsidiaries, operates fast food restaurants serving healthy foods at scale in the United States. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that do not have an expiration date and can be redeemed. The company was founded in 2006 and is headquartered in Los Angeles, California.