Good Times Restaurants (NASDAQ: GTIM) and One Group Hospitality (NASDAQ:STKS) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Institutional and Insider Ownership
32.3% of Good Times Restaurants shares are held by institutional investors. Comparatively, 14.5% of One Group Hospitality shares are held by institutional investors. 8.4% of Good Times Restaurants shares are held by company insiders. Comparatively, 35.9% of One Group Hospitality shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Good Times Restaurants and One Group Hospitality, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Good Times Restaurants||0||0||1||0||3.00|
|One Group Hospitality||0||0||0||0||N/A|
Good Times Restaurants currently has a consensus price target of $6.00, indicating a potential upside of 138.10%. Given Good Times Restaurants’ higher probable upside, research analysts clearly believe Good Times Restaurants is more favorable than One Group Hospitality.
This table compares Good Times Restaurants and One Group Hospitality’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Good Times Restaurants||-2.59%||-5.92%||-4.17%|
|One Group Hospitality||-25.48%||-68.30%||-7.44%|
Risk & Volatility
Good Times Restaurants has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, One Group Hospitality has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Earnings and Valuation
This table compares Good Times Restaurants and One Group Hospitality’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Good Times Restaurants||$79.08 million||0.40||-$2.25 million||($0.18)||-14.00|
|One Group Hospitality||$72.41 million||0.78||-$16.68 million||($0.80)||-2.80|
Good Times Restaurants has higher revenue and earnings than One Group Hospitality. Good Times Restaurants is trading at a lower price-to-earnings ratio than One Group Hospitality, indicating that it is currently the more affordable of the two stocks.
Good Times Restaurants beats One Group Hospitality on 9 of the 12 factors compared between the two stocks.
About Good Times Restaurants
Good Times Restaurants Inc. operates and franchises Good Times Burgers & Frozen Custard (Good Times) restaurants and Bad Daddy’s Burger Bar concept (Bad Daddy’s). The Company operates through two segments: Good Times Burgers and Frozen Custard restaurants, and Bad Daddy’s Burger Bar restaurants. Good Times is a quick service restaurant concept. The menu of a Good Times restaurant includes hamburgers, cheeseburgers, chicken sandwiches, French fries, onion rings, soft drinks and frozen custard products. Its breakfast menu includes breakfast burritos, orange juice and coffee. Bad Daddy’s operates in the burger casual dining sector and is chef driven, full service, full bar concept. Its menu consists of burgers, salads, sandwiches and appetizers. Its bar focuses on local, craft microbrew beers and specialty cocktails. The Company operates through its subsidiaries, Good Times Drive Thru, Inc., BD of Colorado, LLC, Bad Daddy’s Franchise Development, LLC and Bad Daddy’s International, LLC.
About One Group Hospitality
The ONE Group Hospitality, Inc., formerly Committed Capital Acquisition Corporation, is a hospitality company. The Company develops, owns and operates restaurants and lounges, and provides food and beverage services for hospitality venues, including hotels, casinos and other locations across the globe. It operates through three segments: owned STK units (STKs), F&B hospitality management agreements (F&B), and Other concepts (Other). Its STKs segment consists of leased restaurant locations. Its F&B segment consists of management agreements, in which the Company operates the food and beverage services in hotels or casinos and could include an STK. Its Other segment includes owned non-STK leased locations. Its restaurant brand is STK, a multi-unit steakhouse concept with locations in metropolitan cities around the globe. Its F&B hospitality management services include developing, managing and operating restaurants, bars, rooftop lounges, pools, banqueting and catering facilities.
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