NextTrip (NASDAQ:NTRP – Get Free Report) and Nathan’s Famous (NASDAQ:NATH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares NextTrip and Nathan’s Famous’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NextTrip | -289.92% | -246.48% | -105.09% |
| Nathan’s Famous | 11.78% | -187.25% | 34.31% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for NextTrip and Nathan’s Famous, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NextTrip | 1 | 1 | 1 | 0 | 2.00 |
| Nathan’s Famous | 0 | 0 | 1 | 0 | 3.00 |
Volatility and Risk
NextTrip has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Nathan’s Famous has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.
Insider & Institutional Ownership
3.8% of NextTrip shares are held by institutional investors. Comparatively, 66.5% of Nathan’s Famous shares are held by institutional investors. 40.0% of NextTrip shares are held by company insiders. Comparatively, 30.7% of Nathan’s Famous shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares NextTrip and Nathan’s Famous”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NextTrip | $3.72 million | 7.75 | -$15.91 million | ($1.41) | -1.35 |
| Nathan’s Famous | $162.06 million | 2.57 | $20.02 million | $4.83 | 21.07 |
Nathan’s Famous has higher revenue and earnings than NextTrip. NextTrip is trading at a lower price-to-earnings ratio than Nathan’s Famous, indicating that it is currently the more affordable of the two stocks.
Summary
Nathan’s Famous beats NextTrip on 9 of the 13 factors compared between the two stocks.
About NextTrip
NextTrip, Inc., through its subsidiaries, engages in the provision of travel technology solutions in the United States. The company offers NXT2.0, a booking engine technology platform, which provides travel distributors access to an inventory. It is also involved in the provision of online leisure travel agency services for booking hotels, flights, and curated vacations. The company was formerly known as Sigma Additive Solutions, Inc. and changed its name to NextTrip, Inc. in March 2024. NextTrip, Inc. is based in Sunrise, Florida.
About Nathan’s Famous
Nathan’s Famous, Inc. engages in the operation of franchised fast-food units. It is involved in the licensing, wholesaling, and retailing of products marketed under the Nathan’s Famous brand. The firm operates through the following business segments: Branded Product Program, Product Licensing, Restaurant Operations, and Corporate. The Branded Product Program segment markets and sells hot dog products. The Product Licensing segment is composed of royalties from licensing a variety of Nathan’s Famous products such as hotdogs, sausage and corned beef products, frozen French fries, and additional products through retail grocery channels and club stores. The Restaurant Operations segment deals with the sale of products at company-owned restaurants and fees and royalties from franchised restaurants. The Corporate segment includes administrative expenses such as executive management, finance, information technology, legal, insurance, corporate office costs, corporate incentive compensation, and compliance costs. The company was founded by Nathan Handwerker in 1916 and is headquartered in Jericho, NY.
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