Financial Review: Shake Shack (NYSE:SHAK) & Global Business Travel Group (NYSE:GBTG)

Shake Shack (NYSE:SHAK) and Global Business Travel Group (NYSE:GBTG) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Profitability

This table compares Shake Shack and Global Business Travel Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shake Shack	2.56%	9.29%	2.71%
Global Business Travel Group	2.77%	2.47%	0.80%

Valuation and Earnings

This table compares Shake Shack and Global Business Travel Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shake Shack	$1.45 billion	2.13	$45.72 million	$0.94	76.62
Global Business Travel Group	$3.18 billion	1.56	$109.00 million	$0.17	55.88

Global Business Travel Group has higher revenue and earnings than Shake Shack. Global Business Travel Group is trading at a lower price-to-earnings ratio than Shake Shack, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

86.1% of Shake Shack shares are held by institutional investors. Comparatively, 82.5% of Global Business Travel Group shares are held by institutional investors. 8.3% of Shake Shack shares are held by insiders. Comparatively, 5.4% of Global Business Travel Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Shake Shack and Global Business Travel Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shake Shack	0	12	16	0	2.57
Global Business Travel Group	0	5	2	0	2.29

Shake Shack currently has a consensus target price of $87.00, suggesting a potential upside of 20.80%. Global Business Travel Group has a consensus target price of $8.89, suggesting a potential downside of 6.47%. Given Shake Shack’s stronger consensus rating and higher possible upside, research analysts clearly believe Shake Shack is more favorable than Global Business Travel Group.

Risk and Volatility

Shake Shack has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Global Business Travel Group has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

Shake Shack beats Global Business Travel Group on 11 of the 14 factors compared between the two stocks.

About Shake Shack

Shake Shack Inc. owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.

About Global Business Travel Group

Global Business Travel Group, Inc. provides business-to-business (B2B) travel platform in the United States and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers, such as airlines, hotels, ground transportation, and aggregators; and third-party travel agencies. It also provides consulting, meetings and events planning, and outsourced services. Global Business Travel Group, Inc. is based in New York, New York.