Critical Review: Yoshiharu Global (NASDAQ:YOSH) versus Kura Sushi USA (NASDAQ:KRUS)

Kura Sushi USA (NASDAQ:KRUS) and Yoshiharu Global (NASDAQ:YOSH) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Volatility & Risk

Kura Sushi USA has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Yoshiharu Global has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

65.5% of Kura Sushi USA shares are owned by institutional investors. 2.3% of Kura Sushi USA shares are owned by company insiders. Comparatively, 54.2% of Yoshiharu Global 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.

Earnings and Valuation

This table compares Kura Sushi USA and Yoshiharu Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kura Sushi USA	$250.84 million	2.43	-$8.80 million	($0.68)	-74.34
Yoshiharu Global	$11.65 million	2.33	-$3.04 million	N/A	N/A

Yoshiharu Global has lower revenue, but higher earnings than Kura Sushi USA.

Analyst Ratings

This is a breakdown of current ratings and price targets for Kura Sushi USA and Yoshiharu Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kura Sushi USA	0	5	6	0	2.55
Yoshiharu Global	0	0	0	0	0.00

Kura Sushi USA presently has a consensus target price of $86.20, indicating a potential upside of 70.52%. Given Kura Sushi USA’s stronger consensus rating and higher possible upside, analysts clearly believe Kura Sushi USA is more favorable than Yoshiharu Global.

Profitability

This table compares Kura Sushi USA and Yoshiharu Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kura Sushi USA	-3.08%	-0.50%	-0.26%
Yoshiharu Global	-27.41%	-264.46%	-21.23%

Summary

Kura Sushi USA beats Yoshiharu Global on 10 of the 12 factors compared between the two stocks.

About Kura Sushi USA

Kura Sushi USA, Inc. operates technology-enabled Japanese restaurants in the United States. 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 headquartered in Irvine, California. Kura Sushi USA, Inc. is a subsidiary of Kura Sushi, Inc.

About Yoshiharu Global

Yoshiharu Global Co., together with its subsidiaries, engages in the operation of Japanese restaurants in California. It offers bone broth, ramen, sushi rolls, bento boxes, and other Japanese cuisines. The company was founded in 2016 and is based in Buena Park, California.