Financial Analysis: Noble Roman’s (OTCMKTS:NROM) versus J D Wetherspoon (OTCMKTS:JDWPF)

J D Wetherspoon (OTCMKTS:JDWPF) and Noble Roman’s (OTCMKTS:NROM) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Insider & Institutional Ownership

37.5% of J D Wetherspoon shares are held by institutional investors. 23.7% of Noble Roman’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares J D Wetherspoon and Noble Roman’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
J D Wetherspoon	N/A	N/A	N/A
Noble Roman’s	6.58%	30.64%	6.93%

Earnings and Valuation

This table compares J D Wetherspoon and Noble Roman’s”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
J D Wetherspoon	N/A	N/A	N/A	N/A	N/A
Noble Roman’s	$16.46 million	0.83	$1.17 million	$0.05	12.00

Noble Roman’s has higher revenue and earnings than J D Wetherspoon.

Analyst Recommendations

This is a summary of current recommendations and price targets for J D Wetherspoon and Noble Roman’s, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
J D Wetherspoon	1	0	1	0	2.00
Noble Roman’s	0	0	0	0	0.00

Summary

Noble Roman’s beats J D Wetherspoon on 5 of the 8 factors compared between the two stocks.

About J D Wetherspoon

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. The company was founded in 1979 and is based in Watford, the United Kingdom.

About Noble Roman’s

Noble Roman's, Inc. sells and services franchises, and licenses and operates foodservice locations for stand-alone restaurants and non-traditional foodservice operations. The company franchises, licenses, and operates foodservice locations 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 breadsticks and cheesy stix with dip, pizza, pasta, salads, wings, baked sandwiches, and other related breakfast products, as well as a selection of desserts. The company was incorporated in 1972 and is headquartered in Indianapolis, Indiana.