Reviewing CAVA Group (NYSE:CAVA) and Kona Grill (OTCMKTS:KONAQ)

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

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for CAVA Group and Kona Grill, as provided by MarketBeat.

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

CAVA Group presently has a consensus target price of $116.93, suggesting a potential downside of 14.13%.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAVA Group	$845.22 million	18.37	$13.28 million	$0.41	332.12
Kona Grill	$156.94 million	0.00	-$31.97 million	N/A	N/A

CAVA Group has higher revenue and earnings than Kona Grill.

Insider and Institutional Ownership

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

Summary

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

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.

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.