Head-To-Head Survey: BT Brands (NASDAQ:BTBD) versus PENN Entertainment (NASDAQ:PENN)

PENN Entertainment (NASDAQ:PENN) and BT Brands (NASDAQ:BTBD) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Earnings & Valuation

This table compares PENN Entertainment and BT Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PENN Entertainment	$7.16 billion	0.28	-$852.67 million	($6.36)	-2.33
BT Brands	$12.87 million	0.83	-$556,650.00	($0.09)	-19.11

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

Volatility and Risk

PENN Entertainment has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Insider and Institutional Ownership

91.7% of PENN Entertainment shares are owned by institutional investors. Comparatively, 0.4% of BT Brands shares are owned by institutional investors. 3.2% of PENN Entertainment shares are owned by insiders. Comparatively, 19.6% of BT Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PENN Entertainment and BT Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PENN Entertainment	1	5	14	1	2.71
BT Brands	1	0	0	0	1.00

PENN Entertainment currently has a consensus price target of $23.61, suggesting a potential upside of 59.21%. Given PENN Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe PENN Entertainment is more favorable than BT Brands.

Profitability

This table compares PENN Entertainment and BT Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PENN Entertainment	N/A	N/A	N/A
BT Brands	N/A	N/A	N/A

Summary

PENN Entertainment beats BT Brands on 8 of the 12 factors compared between the two stocks.

About PENN Entertainment

PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.

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.