Good Times Restaurants (NASDAQ:GTIM) and Meritage Hospitality Group (OTCMKTS:MHGU) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Insider & Institutional Ownership
16.0% of Good Times Restaurants shares are held by institutional investors. 24.5% of Good Times Restaurants shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Good Times Restaurants and Meritage Hospitality Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Good Times Restaurants||0||0||2||0||3.00|
|Meritage Hospitality Group||0||0||0||0||N/A|
Good Times Restaurants presently has a consensus price target of $6.25, suggesting a potential upside of 177.78%. Given Good Times Restaurants’ higher probable upside, analysts plainly believe Good Times Restaurants is more favorable than Meritage Hospitality Group.
Earnings and Valuation
This table compares Good Times Restaurants and Meritage Hospitality Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Good Times Restaurants||$99.24 million||0.28||-$1.03 million||($0.08)||-28.13|
|Meritage Hospitality Group||$435.30 million||0.26||$13.01 million||N/A||N/A|
Meritage Hospitality Group has higher revenue and earnings than Good Times Restaurants.
Risk & Volatility
Good Times Restaurants has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Meritage Hospitality Group has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
This table compares Good Times Restaurants and Meritage Hospitality Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Good Times Restaurants||-1.44%||-4.25%||-2.53%|
|Meritage Hospitality Group||2.99%||24.74%||4.17%|
Good Times Restaurants beats Meritage Hospitality Group on 6 of the 11 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. 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.
About Meritage Hospitality Group
Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Twisted Rooster, Crooked Goose, Freighters Eatery & Taproom, and Wheelhouse Kitchen & Cocktails brand names. As of November 13, 2018, it operated 314 restaurants in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was incorporated in 1986 and is headquartered in Grand Rapids, Michigan.
Receive News & Ratings for Good Times Restaurants Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Good Times Restaurants and related companies with MarketBeat.com's FREE daily email newsletter.