Good Times Restaurants (NASDAQ: GTIM) and Papa John’s International (NASDAQ:PZZA) are both retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Valuation & Earnings

This table compares Good Times Restaurants and Papa John’s International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Good Times Restaurants $73.71 million 0.47 $2.12 million ($0.14) -20.00
Papa John’s International $1.75 billion 1.60 $198.59 million $2.87 26.83

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

Risk and Volatility

Good Times Restaurants has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Papa John’s International has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Good Times Restaurants and Papa John’s International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Good Times Restaurants 0 0 1 0 3.00
Papa John’s International 0 3 3 0 2.50

Good Times Restaurants currently has a consensus target price of $6.00, indicating a potential upside of 114.29%. Papa John’s International has a consensus target price of $87.60, indicating a potential upside of 13.77%. Given Good Times Restaurants’ stronger consensus rating and higher probable upside, equities analysts clearly believe Good Times Restaurants is more favorable than Papa John’s International.

Dividends

Papa John’s International pays an annual dividend of $0.90 per share and has a dividend yield of 1.2%. Good Times Restaurants does not pay a dividend. Papa John’s International pays out 31.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

32.7% of Good Times Restaurants shares are owned by institutional investors. Comparatively, 83.8% of Papa John’s International shares are owned by institutional investors. 8.4% of Good Times Restaurants shares are owned by insiders. Comparatively, 27.7% of Papa John’s International shares are owned by 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 Papa John’s International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Good Times Restaurants -2.25% -4.44% -3.35%
Papa John’s International 6.13% 919.82% 19.48%

Summary

Papa John’s International beats Good Times Restaurants on 11 of the 14 factors compared between the two stocks.

Good Times Restaurants Company Profile

Good Times Restaurants Inc. operates and franchises Good Times Burgers & Frozen Custard (Good Times) restaurants and Bad Daddy’s Burger Bar concept (Bad Daddy’s). The Company operates through two segments: Good Times Burgers and Frozen Custard restaurants, and Bad Daddy’s Burger Bar restaurants. Good Times is a quick service restaurant concept. The menu of a Good Times restaurant includes hamburgers, cheeseburgers, chicken sandwiches, French fries, onion rings, soft drinks and frozen custard products. Its breakfast menu includes breakfast burritos, orange juice and coffee. Bad Daddy’s operates in the burger casual dining sector and is chef driven, full service, full bar concept. Its menu consists of burgers, salads, sandwiches and appetizers. Its bar focuses on local, craft microbrew beers and specialty cocktails. The Company operates through its subsidiaries, Good Times Drive Thru, Inc., BD of Colorado, LLC, Bad Daddy’s Franchise Development, LLC and Bad Daddy’s International, LLC.

Papa John’s International Company Profile

Papa John’s International, Inc. (Papa John’s) operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark Papa John’s. The Company operates through five segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. As of December 25, 2016, there were 5,097 Papa John’s restaurants in operation, consisting of 744 Company-owned and 4,353 franchised restaurants operating domestically in all 50 states and in 45 countries and territories. It offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages.

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