Reviewing Global Business Travel Group (NYSE:GBTG) and Shake Shack (NYSE:SHAK)

Shake Shack (NYSE:SHAK) and Global Business Travel Group (NYSE:GBTG) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Risk and Volatility

Shake Shack has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Global Business Travel Group has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Shake Shack and Global Business Travel Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shake Shack	$1.45 billion	2.23	$45.72 million	$1.03	72.99
Global Business Travel Group	$3.18 billion	1.56	$109.00 million	$0.17	55.88

Global Business Travel Group has higher revenue and earnings than Shake Shack. Global Business Travel Group is trading at a lower price-to-earnings ratio than Shake Shack, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Shake Shack and Global Business Travel Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shake Shack	0	12	16	0	2.57
Global Business Travel Group	0	5	2	0	2.29

Shake Shack presently has a consensus target price of $87.09, suggesting a potential upside of 15.83%. Global Business Travel Group has a consensus target price of $8.89, suggesting a potential downside of 6.47%. Given Shake Shack’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Shake Shack is more favorable than Global Business Travel Group.

Insider & Institutional Ownership

86.1% of Shake Shack shares are owned by institutional investors. Comparatively, 82.5% of Global Business Travel Group shares are owned by institutional investors. 8.3% of Shake Shack shares are owned by company insiders. Comparatively, 5.4% of Global Business Travel Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Shake Shack and Global Business Travel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shake Shack	2.72%	9.38%	2.75%
Global Business Travel Group	2.77%	2.47%	0.80%

Summary

Shake Shack beats Global Business Travel Group on 11 of the 14 factors compared between the two stocks.

About Shake Shack

Shake Shack operates a fast-casual restaurant business focused on burgers, chicken, hot dogs, crinkle-cut fries, shakes and frozen custard. Some locations also serve beer and wine. The company serves customers through restaurants and digital ordering, including delivery. The business grew from a hot dog cart opened in New York City’s Madison Square Park in 2001. Shake Shack opened its first permanent kiosk in the park in 2004 and has since expanded its restaurant operations. Shake Shack serves customers in the United States and internationally.

About Global Business Travel Group

Global Business Travel Group, Inc., which operates as American Express Global Business Travel (Amex GBT), provides travel management services and technology to businesses. Its offerings help organizations plan and book business trips, manage travel programs, and support meetings and events. The company serves clients across international markets through brands including Amex GBT, Egencia and Ovation. Its services combine travel booking and support with consulting and digital tools designed to help businesses manage their travel needs.