Critical Contrast: SSP Group (OTCMKTS:SSPPF) versus Shake Shack (NYSE:SHAK)

Shake Shack (NYSE:SHAK) and SSP Group (OTCMKTS:SSPPF) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Institutional and Insider Ownership

86.1% of Shake Shack shares are owned by institutional investors. 8.5% of Shake Shack shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Shake Shack has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, SSP Group has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Profitability

This table compares Shake Shack and SSP Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shake Shack	2.76%	9.62%	2.81%
SSP Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Shake Shack and SSP Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shake Shack	0	13	14	1	2.57
SSP Group	0	2	1	0	2.33

Shake Shack presently has a consensus price target of $107.92, suggesting a potential upside of 53.86%. Given Shake Shack’s stronger consensus rating and higher probable upside, analysts plainly believe Shake Shack is more favorable than SSP Group.

Valuation and Earnings

This table compares Shake Shack and SSP Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shake Shack	$1.45 billion	2.07	$45.72 million	$1.09	64.35
SSP Group	$4.75 billion	0.36	-$97.17 million	N/A	N/A

Shake Shack has higher earnings, but lower revenue than SSP Group.

Summary

Shake Shack beats SSP Group on 12 of the 13 factors compared between the two stocks.

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.

About SSP Group

SSP Group plc operates food and beverage outlets in North America, Europe, the United Kingdom, Ireland, the Asia Pacific, Eastern Europe, the Middle East, and internationally. The company operates outlets at airports, railway stations, motorway service areas, hospitals, and shopping centers. It also operates sandwich shops, cafes, bars, and restaurants. SSP Group plc was founded in 1961 and is headquartered in London, the United Kingdom.