Head to Head Contrast: Shake Shack (NYSE:SHAK) vs. Pinstripes (NYSE:PNST)

Shake Shack (NYSE:SHAK) and Pinstripes (NYSE:PNST) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Valuation and Earnings

This table compares Shake Shack and Pinstripes”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shake Shack	$1.17 billion	3.71	$20.26 million	$0.55	186.40
Pinstripes	$118.72 million	0.39	-$6.79 million	N/A	N/A

Shake Shack has higher revenue and earnings than Pinstripes.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Shake Shack and Pinstripes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shake Shack	1	10	6	1	2.39
Pinstripes	0	0	3	0	3.00

Shake Shack presently has a consensus target price of $107.56, indicating a potential upside of 4.91%. Pinstripes has a consensus target price of $4.50, indicating a potential upside of 291.30%. Given Pinstripes’ stronger consensus rating and higher probable upside, analysts clearly believe Pinstripes is more favorable than Shake Shack.

Insider & Institutional Ownership

86.1% of Shake Shack shares are owned by institutional investors. Comparatively, 56.8% of Pinstripes shares are owned by institutional investors. 9.7% of Shake Shack shares are owned by insiders. Comparatively, 22.8% of Pinstripes shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Shake Shack and Pinstripes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shake Shack	2.23%	5.63%	1.63%
Pinstripes	N/A	N/A	-6.06%

Volatility & Risk

Shake Shack has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Pinstripes has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500.

Summary

Shake Shack beats Pinstripes on 10 of the 13 factors compared between the two stocks.

About Shake Shack

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.

About Pinstripes

Pinstripes Holdings Inc. operates a dining and entertainment concept restaurants. The company provides Italian-American food and beverage menu with bowling, bocce, and event space. It also offers private event options and catering services. The company is based in Northbrook, Illinois.