Financial Contrast: Good Times Restaurants (NASDAQ:GTIM) and Brightstar Lottery (NYSE:BRSL)

Brightstar Lottery (NYSE:BRSL) and Good Times Restaurants (NASDAQ:GTIM) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Valuation & Earnings

This table compares Brightstar Lottery and Good Times Restaurants”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brightstar Lottery	$2.51 billion	0.78	$147.00 million	$1.30	8.11
Good Times Restaurants	$141.63 million	0.11	$1.02 million	$0.21	7.14

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

Risk and Volatility

Brightstar Lottery has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Good Times Restaurants has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Brightstar Lottery and Good Times Restaurants, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brightstar Lottery	1	4	4	0	2.33
Good Times Restaurants	1	0	0	0	1.00

Brightstar Lottery currently has a consensus price target of $15.10, suggesting a potential upside of 43.20%. Given Brightstar Lottery’s stronger consensus rating and higher probable upside, research analysts plainly believe Brightstar Lottery is more favorable than Good Times Restaurants.

Insider & Institutional Ownership

44.3% of Brightstar Lottery shares are held by institutional investors. Comparatively, 12.1% of Good Times Restaurants shares are held by institutional investors. 1.2% of Brightstar Lottery 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brightstar Lottery	10.05%	10.47%	2.06%
Good Times Restaurants	1.65%	6.47%	2.73%

Summary

Brightstar Lottery beats Good Times Restaurants on 12 of the 14 factors compared between the two stocks.

About Brightstar Lottery

International Game Technology PLC operates and provides gaming technology products and services in North America, Europe, the Middle East, Africa, Asia-Pacific, Latin America, and the Caribbean. It operates in three segments: Global Lottery, Global Gaming, and Digital & Betting. The company designs, sells, operates, and leases a suite of point-of-sale machines that reconciles lottery funds between the retailer and lottery authority; provides online lottery transaction processing systems; produces instant ticket games; and offers printing services, such as instant ticket marketing plans and graphic design, programming, packaging, shipping, and delivery services. It also designs, develops, assembles, and provides cabinets, games, systems, and software for the gaming market, as well as offers gaming management systems for casino management, customer relationship management, patron management, and server-based gaming. In addition, the company provides video lottery terminals (VLT), VLT central systems, and VLT games. Further, it offers digital gaming and betting; sports betting; and technology and management services. Additionally, the company provides digital gaming products and services, including blackjack, roulette, slot games, poker, bingo, and other casino card games; social casino content; and remote game server, as well as iGaming systems and digital platforms that offer player account management, advanced marketing and analytical, and payment system services. It processes commercial transactions, such as prepaid cellular telephone recharges, bill payments, e-vouchers and retail-based programs, electronic tax payments, prepaid card recharges, and stamp duty and money transfer services. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was founded in 2014 and is headquartered in London, the United Kingdom. International Game Technology PLC is a subsidiary of De Agostini S.p.A.

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.