Good Times Restaurants (NASDAQ:GTIM) vs. Famous Dave’s of America (NASDAQ:DAVE) Critical Comparison

Good Times Restaurants (NASDAQ:GTIM) and Famous Dave’s of America (NASDAQ:DAVE) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Good Times Restaurants and Famous Dave’s of America, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Good Times Restaurants 0 0 2 0 3.00
Famous Dave’s of America 0 0 1 0 3.00

Good Times Restaurants currently has a consensus target price of $5.75, indicating a potential upside of 230.46%. Famous Dave’s of America has a consensus target price of $8.00, indicating a potential upside of 75.82%. Given Good Times Restaurants’ higher probable upside, research analysts plainly believe Good Times Restaurants is more favorable than Famous Dave’s of America.

Valuation and Earnings

This table compares Good Times Restaurants and Famous Dave’s of America’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Good Times Restaurants $99.24 million 0.22 -$1.03 million ($0.08) -21.75
Famous Dave’s of America $54.89 million 0.77 $4.86 million N/A N/A

Famous Dave’s of America has lower revenue, but higher earnings than Good Times Restaurants.

Volatility & Risk

Good Times Restaurants has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Famous Dave’s of America has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares Good Times Restaurants and Famous Dave’s of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Good Times Restaurants -1.18% -3.69% -2.11%
Famous Dave’s of America 5.72% 19.41% 8.92%

Insider and Institutional Ownership

11.9% of Good Times Restaurants shares are held by institutional investors. Comparatively, 51.4% of Famous Dave’s of America shares are held by institutional investors. 24.5% of Good Times Restaurants shares are held by insiders. Comparatively, 43.0% of Famous Dave’s of America shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Famous Dave’s of America beats Good Times Restaurants on 9 of the 12 factors compared between the two stocks.

Good Times Restaurants Company Profile

Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. The company 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 January 10, 2019, it operated and franchised a total of 35 restaurants under the Good Times Burgers & Frozen Custard name; and 35 Bad Daddy's Burger Bar restaurants. The company was founded in 1986 and is based in Lakewood, Colorado.

Famous Dave’s of America Company Profile

Famous Dave's of America, Inc. develops, owns, operates, and franchises barbeque restaurants under the Famous Dave's name. It offers smoked, barbequed, and grilled meats, as well as entrée items and delicious side dishes that are prepared using prepared proprietary seasonings, sauces, and mixes. The company operates full-service and counter-service restaurants. As of March 4, 2019, it owned 17 locations and franchised 124 restaurants in 33 states, the Commonwealth of Puerto Rico, Canada, and the United Arab Emirates. Famous Dave's of America, Inc. was founded in 1994 and is headquartered in Minnetonka, Minnesota.

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