Critical Survey: Shake Shack (NYSE:SHAK) & Pinstripes (NYSE:PNST)
by Amy Steele · The Cerbat GemPinstripes (NYSE:PNST – Get Free Report) and Shake Shack (NYSE:SHAK – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Profitability
This table compares Pinstripes and Shake Shack’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pinstripes | N/A | N/A | -6.06% |
| Shake Shack | 2.23% | 5.63% | 1.63% |
Valuation & Earnings
This table compares Pinstripes and Shake Shack”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pinstripes | $123.58 million | 0.34 | -$6.79 million | N/A | N/A |
| Shake Shack | $1.09 billion | 4.19 | $20.26 million | $0.55 | 195.29 |
Shake Shack has higher revenue and earnings than Pinstripes.
Risk and Volatility
Pinstripes has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500. Comparatively, Shake Shack has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Pinstripes and Shake Shack, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pinstripes | 0 | 0 | 3 | 0 | 3.00 |
| Shake Shack | 1 | 10 | 6 | 1 | 2.39 |
Pinstripes currently has a consensus price target of $4.50, indicating a potential upside of 334.78%. Shake Shack has a consensus price target of $107.56, indicating a potential upside of 0.14%. Given Pinstripes’ stronger consensus rating and higher possible upside, analysts clearly believe Pinstripes is more favorable than Shake Shack.
Insider and Institutional Ownership
56.8% of Pinstripes shares are owned by institutional investors. Comparatively, 86.1% of Shake Shack shares are owned by institutional investors. 22.8% of Pinstripes shares are owned by company insiders. Comparatively, 9.7% of Shake Shack shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Shake Shack beats Pinstripes on 10 of the 13 factors compared between the two stocks.
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.
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.