Head-To-Head Comparison: Life Time Group (NYSE:LTH) vs. Red Robin Gourmet Burgers (NASDAQ:RRGB)

Life Time Group (NYSE:LTH) and Red Robin Gourmet Burgers (NASDAQ:RRGB) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Volatility & Risk

Life Time Group has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.

Valuation & Earnings

This table compares Life Time Group and Red Robin Gourmet Burgers”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life Time Group	$3.00 billion	3.02	$373.67 million	$1.84	21.97
Red Robin Gourmet Burgers	$1.19 billion	0.13	-$23.28 million	($1.69)	-4.97

Life Time Group has higher revenue and earnings than Red Robin Gourmet Burgers. Red Robin Gourmet Burgers is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Life Time Group and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life Time Group	13.07%	10.56%	4.13%
Red Robin Gourmet Burgers	-2.55%	N/A	-2.65%

Institutional & Insider Ownership

79.4% of Life Time Group shares are held by institutional investors. Comparatively, 84.0% of Red Robin Gourmet Burgers shares are held by institutional investors. 13.3% of Life Time Group shares are held by insiders. Comparatively, 4.1% of Red Robin Gourmet Burgers shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Life Time Group and Red Robin Gourmet Burgers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Time Group	0	0	13	2	3.13
Red Robin Gourmet Burgers	1	1	2	0	2.25

Life Time Group currently has a consensus price target of $55.31, suggesting a potential upside of 36.83%. Red Robin Gourmet Burgers has a consensus price target of $8.33, suggesting a potential downside of 0.69%. Given Life Time Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Life Time Group is more favorable than Red Robin Gourmet Burgers.

Summary

Life Time Group beats Red Robin Gourmet Burgers on 13 of the 15 factors compared between the two stocks.

About Life Time Group

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.

About Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.