Head-To-Head Survey: Dutch Bros (NYSE:BROS) & Good Times Restaurants (NASDAQ:GTIM)

Dutch Bros (NYSE:BROS) and Good Times Restaurants (NASDAQ:GTIM) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Dutch Bros and Good Times Restaurants’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	4.61%	9.42%	2.80%
Good Times Restaurants	1.32%	5.34%	2.18%

Valuation and Earnings

This table compares Dutch Bros and Good Times Restaurants”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.64 billion	7.03	$79.84 million	$0.64	102.99
Good Times Restaurants	$141.63 million	0.10	$1.02 million	$0.17	7.53

Dutch Bros has higher revenue and earnings than Good Times Restaurants. Good Times Restaurants is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Dutch Bros has a beta of 2.36, meaning that its share price is 136% more volatile than the S&P 500. Comparatively, Good Times Restaurants has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dutch Bros and Good Times Restaurants, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	3	20	1	2.92
Good Times Restaurants	1	0	0	0	1.00

Dutch Bros presently has a consensus price target of $76.00, indicating a potential upside of 15.31%. Given Dutch Bros’ stronger consensus rating and higher possible upside, analysts clearly believe Dutch Bros is more favorable than Good Times Restaurants.

Institutional & Insider Ownership

85.5% of Dutch Bros shares are held by institutional investors. Comparatively, 12.1% of Good Times Restaurants shares are held by institutional investors. 38.9% of Dutch Bros shares are held by company insiders. Comparatively, 26.5% of Good Times Restaurants shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Dutch Bros beats Good Times Restaurants on 15 of the 15 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

About Good Times Restaurants

Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. It operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. The company was incorporated in 1987 and is based in Golden, Colorado.