Planet Fitness (NYSE:PLNT) & Good Times Restaurants (NASDAQ:GTIM) Head-To-Head Survey

Good Times Restaurants (NASDAQ:GTIM) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Earnings and Valuation

This table compares Good Times Restaurants and Planet Fitness”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Good Times Restaurants	$141.63 million	0.09	$1.02 million	$0.21	5.95
Planet Fitness	$1.32 billion	3.48	$219.10 million	$2.95	20.70

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

Institutional & Insider Ownership

12.1% of Good Times Restaurants shares are held by institutional investors. Comparatively, 95.5% of Planet Fitness shares are held by institutional investors. 26.5% of Good Times Restaurants shares are held by company insiders. Comparatively, 0.9% of Planet Fitness shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Good Times Restaurants	1.65%	6.47%	2.73%
Planet Fitness	16.88%	-59.46%	8.60%

Analyst Ratings

This is a summary of current ratings and recommmendations for Good Times Restaurants and Planet Fitness, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Good Times Restaurants	1	0	0	0	1.00
Planet Fitness	1	9	11	1	2.55

Planet Fitness has a consensus price target of $71.87, indicating a potential upside of 17.66%. Given Planet Fitness’ stronger consensus rating and higher possible upside, analysts plainly believe Planet Fitness is more favorable than Good Times Restaurants.

Volatility and Risk

Good Times Restaurants has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Summary

Planet Fitness beats Good Times Restaurants on 13 of the 15 factors compared between the two stocks.

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.

About Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.