BT Brands (NASDAQ:BTBD) & Texas Roadhouse (NASDAQ:TXRH) Head to Head Survey

Texas Roadhouse (NASDAQ:TXRH) and BT Brands (NASDAQ:BTBD) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Profitability

This table compares Texas Roadhouse and BT Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Roadhouse	7.49%	30.59%	13.54%
BT Brands	-6.67%	-8.02%	-4.89%

Analyst Recommendations

This is a summary of current ratings and target prices for Texas Roadhouse and BT Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Roadhouse	1	10	10	2	2.57
BT Brands	1	0	0	0	1.00

Texas Roadhouse currently has a consensus target price of $192.95, suggesting a potential upside of 14.69%. Given Texas Roadhouse’s stronger consensus rating and higher probable upside, equities analysts clearly believe Texas Roadhouse is more favorable than BT Brands.

Earnings and Valuation

This table compares Texas Roadhouse and BT Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Roadhouse	$5.37 billion	2.07	$433.59 million	$6.54	25.72
BT Brands	$14.82 million	0.64	-$2.31 million	($0.14)	-10.96

Texas Roadhouse has higher revenue and earnings than BT Brands. BT Brands is trading at a lower price-to-earnings ratio than Texas Roadhouse, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.8% of Texas Roadhouse shares are owned by institutional investors. Comparatively, 0.4% of BT Brands shares are owned by institutional investors. 0.5% of Texas Roadhouse shares are owned by company insiders. Comparatively, 19.6% of BT Brands shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Texas Roadhouse has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Summary

Texas Roadhouse beats BT Brands on 13 of the 14 factors compared between the two stocks.

About Texas Roadhouse

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

About BT Brands

BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates Burger Time restaurants located in Minnesota, North Dakota, and South Dakota; and a Dairy Queen franchise in Ham Lake, Minnesota. Its Burger Time restaurants provide various burgers and other food products, such as chicken sandwiches, pulled pork sandwiches, chicken chunks, side dishes, and soft drinks; and Dairy Queen restaurant offers burgers, chicken, sides, ice cream and other desserts, and various beverages. The company was founded in 1987 and is based in West Fargo, North Dakota.