Yum China (NASDAQ: GTIM) and Good Times Restaurants (NASDAQ:GTIM) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.
This table compares Yum China and Good Times Restaurants’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Good Times Restaurants||-1.45%||-3.72%||-2.48%|
Risk & Volatility
Yum China has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Good Times Restaurants has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Yum China and Good Times Restaurants, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Good Times Restaurants||0||0||1||0||3.00|
Yum China presently has a consensus target price of $46.06, indicating a potential upside of 41.84%. Good Times Restaurants has a consensus target price of $7.00, indicating a potential upside of 44.33%. Given Good Times Restaurants’ stronger consensus rating and higher probable upside, analysts plainly believe Good Times Restaurants is more favorable than Yum China.
Yum China pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Good Times Restaurants does not pay a dividend. Yum China pays out 28.2% of its earnings in the form of a dividend.
Insider & Institutional Ownership
82.7% of Yum China shares are owned by institutional investors. Comparatively, 15.8% of Good Times Restaurants shares are owned by institutional investors. 0.4% of Yum China shares are owned by insiders. Comparatively, 5.7% of Good Times Restaurants shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Yum China and Good Times Restaurants’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Yum China||$7.14 billion||1.74||$403.00 million||$1.42||22.87|
|Good Times Restaurants||$79.08 million||0.76||-$2.25 million||($0.18)||-26.94|
Yum China has higher revenue and earnings than Good Times Restaurants. Good Times Restaurants is trading at a lower price-to-earnings ratio than Yum China, indicating that it is currently the more affordable of the two stocks.
Yum China beats Good Times Restaurants on 12 of the 16 factors compared between the two stocks.
Yum China Company Profile
Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates in two segments, KFC and Pizza Hut. It operates restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning, and Little Sheep brands, which specialize in chicken, pizza, hot pot cooking, Chinese food, and Mexican-style food categories. The company also provides online food delivery services. As of December 31, 2017, it operated approximately 5,400 KFC restaurants; 2,100 Pizza Hut restaurants; 280 Little Sheep units; 10 East Dawning restaurants; and 3 Taco Bell restaurants. Yum China Holdings, Inc. was incorporated in 2016 and is headquartered in Shanghai, the People's Republic of China.
Good Times Restaurants Company Profile
Good Times Restaurants Inc., through its subsidiaries, engages in restaurant business in the United States. It operates Good Times Burgers & Frozen Custard, a regional chain of quick service restaurants; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full service, upscale ?small box' restaurant concept. As of June 8, 2018, it operated and franchised a total of 36 restaurants under the Good Times Burgers & Frozen Custard name; and 29 Bad Daddy's Burger Bar restaurants. The company was founded in 1986 and is based in Lakewood, Colorado.
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