Noble Roman’s (OTCMKTS:NROM) and Ark Restaurants (NASDAQ:ARKR) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Noble Roman’s and Ark Restaurants, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble Roman’s 0 0 0 0 N/A
Ark Restaurants 0 0 0 0 N/A

Profitability

This table compares Noble Roman’s and Ark Restaurants’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble Roman’s -24.55% -28.30% -16.27%
Ark Restaurants 1.84% 9.32% 4.83%

Institutional and Insider Ownership

0.3% of Noble Roman’s shares are owned by institutional investors. Comparatively, 23.4% of Ark Restaurants shares are owned by institutional investors. 30.1% of Noble Roman’s shares are owned by company insiders. Comparatively, 41.6% of Ark Restaurants shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Noble Roman’s and Ark Restaurants’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noble Roman’s $12.45 million 0.77 -$3.06 million N/A N/A
Ark Restaurants $159.99 million 0.43 $4.65 million N/A N/A

Ark Restaurants has higher revenue and earnings than Noble Roman’s.

Risk & Volatility

Noble Roman’s has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Ark Restaurants has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Dividends

Ark Restaurants pays an annual dividend of $1.00 per share and has a dividend yield of 5.0%. Noble Roman’s does not pay a dividend.

Summary

Ark Restaurants beats Noble Roman’s on 8 of the 10 factors compared between the two stocks.

Noble Roman’s Company Profile

Noble Roman's, Inc. sells and services franchises and licenses, and operates foodservice locations for non-traditional foodservice operations and stand-alone restaurants. The company franchises, licenses, and operates under the Noble Roman's Craft Pizza & Pub, Noble Roman's Pizza, Noble Roman's Take-N-Bake, and Tuscano's Italian Style Subs trade names, which provide pizza, pasta, salads, sub sandwiches, and other related menu items. As of December 31, 2017, it operated 2,854 franchised or licensed outlets. The company has operations in 50 states of the United States. Noble Roman's, Inc. was incorporated in 1972 and is headquartered in Indianapolis, Indiana.

Ark Restaurants Company Profile

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of September 29, 2018, it owned and/or operated 20 restaurants and bars, including 5 facilities located in New York City; 2 in Washington, D.C.; 5 in Las Vegas, Nevada; 3 in Atlantic City, New Jersey; 1 in the Faneuil Hall Marketplace in Boston, Massachusetts; 2 on the east coast of Florida; and 2 on the gulf coast of Alabama, as well as had 19 fast food concepts and catering operations. The company was founded in 1983 and is based in New York, New York.

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