Financial Comparison: Habit Restaurants (HABT) and Kona Grill (KONA)

Habit Restaurants (NASDAQ: HABT) and Kona Grill (NASDAQ:KONA) are both small-cap cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Habit Restaurants and Kona Grill, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Habit Restaurants 0 4 4 0 2.50
Kona Grill 0 2 2 0 2.50

Habit Restaurants presently has a consensus target price of $14.86, indicating a potential upside of 54.76%. Kona Grill has a consensus target price of $6.17, indicating a potential upside of 190.20%. Given Kona Grill’s higher possible upside, analysts clearly believe Kona Grill is more favorable than Habit Restaurants.


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

Net Margins Return on Equity Return on Assets
Habit Restaurants -0.85% 2.87% 1.27%
Kona Grill -15.32% -55.38% -12.50%

Risk & Volatility

Habit Restaurants has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Kona Grill has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Earnings and Valuation

This table compares Habit Restaurants and Kona Grill’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Habit Restaurants $331.70 million 0.75 -$2.80 million $3.01 3.19
Kona Grill $169.52 million 0.13 -$21.62 million ($2.67) -0.80

Habit Restaurants has higher revenue and earnings than Kona Grill. Kona Grill is trading at a lower price-to-earnings ratio than Habit Restaurants, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

73.5% of Habit Restaurants shares are owned by institutional investors. Comparatively, 19.8% of Kona Grill shares are owned by institutional investors. 16.1% of Habit Restaurants shares are owned by insiders. Comparatively, 29.2% of Kona Grill shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.


Habit Restaurants beats Kona Grill on 11 of the 13 factors compared between the two stocks.

Habit Restaurants Company Profile

The Habit Restaurants, Inc. (Habit Burger Grill) is a fast casual restaurant company. The Company is engaged in preparing made-to-order char-grilled burgers and sandwiches featuring tri-tip steak, grilled chicken and sushi-grade albacore tuna cooked over an open flame. In addition, it offers sides, shakes and malts. The Company prepares its burgers with char-grilled preparation, topped with caramelized onions, melted cheese, lettuce and tomatoes. It operates a range of restaurant formats, including end-cap, free-standing, inline, end-cap drive-thru and traditional stand-alone drive-in, primarily within suburban shopping centers and retail settings. As of December 27, 2016, the Company had 172 locations in 15 markets in 10 states and the United Arab Emirates, including franchised/licensed locations (excluding six licensed locations in Santa Barbara County, California).

Kona Grill Company Profile

Kona Grill, Inc. owns and operates upscale casual dining restaurants under the name Kona Grill. The Company owns and operates approximately 40 restaurants in 20 states throughout the United States and Puerto Rico. Its high-volume upscale casual restaurants feature a global menu of contemporary American favorites and sushi. Its menu items are prepared from scratch at each restaurant location and incorporate over 40 signature sauces and dressings. It also offers a full service bar offering a range assortment of wines, specialty cocktails and beers. Its restaurants seat an average of approximately 290 customers and comprise multiple dining areas. Its dining area, full-service bar, indoor/outdoor patio and sushi bar provide a choice of atmospheres and a range of environments. It locates its restaurants in various areas, such as retail centers, shopping malls, urban entertainment districts and lifestyle centers that are situated near commercial office space and residential housing.

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