Head to Head Analysis: Good Times Restaurants (NASDAQ:GTIM) & Dutch Bros (NYSE:BROS)

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

Profitability

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

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

Institutional and Insider Ownership

12.1% of Good Times Restaurants shares are owned by institutional investors. Comparatively, 85.5% of Dutch Bros shares are owned by institutional investors. 26.5% of Good Times Restaurants shares are owned by company insiders. Comparatively, 38.9% of Dutch Bros shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Good Times Restaurants and Dutch Bros”s top-line 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	0.10	$1.02 million	$0.17	7.88
Dutch Bros	$1.64 billion	7.54	$79.84 million	$0.64	110.47

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.

Volatility & Risk

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

Analyst Recommendations

This is a summary of current ratings and price targets for Good Times Restaurants and Dutch Bros, as reported by MarketBeat.

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

Dutch Bros has a consensus price target of $76.00, indicating a potential upside of 7.49%. Given Dutch Bros’ stronger consensus rating and higher possible upside, analysts clearly believe Dutch Bros is more favorable than Good Times Restaurants.

Summary

Dutch Bros beats Good Times Restaurants on 15 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 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.