Head-To-Head Contrast: Dutch Bros (NYSE:BROS) versus Life Time Group (NYSE:LTH)

Dutch Bros (NYSE:BROS) and Life Time Group (NYSE:LTH) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Volatility and Risk

Dutch Bros has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

85.5% of Dutch Bros shares are owned by institutional investors. Comparatively, 79.4% of Life Time Group shares are owned by institutional investors. 38.9% of Dutch Bros shares are owned by insiders. Comparatively, 13.3% of Life Time Group shares are owned by 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 Dutch Bros and Life Time Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dutch Bros	$1.64 billion	3.61	$79.84 million	$0.78	43.35
Life Time Group	$3.00 billion	3.53	$373.67 million	$1.84	25.58

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

Profitability

This table compares Dutch Bros and Life Time Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dutch Bros	5.08%	10.46%	3.06%
Life Time Group	12.72%	11.01%	4.36%

Analyst Recommendations

This is a summary of current ratings and price targets for Dutch Bros and Life Time Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dutch Bros	0	4	20	2	2.92
Life Time Group	0	1	15	0	2.94

Dutch Bros currently has a consensus price target of $61.62, suggesting a potential upside of 82.27%. Life Time Group has a consensus price target of $56.14, suggesting a potential upside of 19.26%. Given Dutch Bros’ higher probable upside, equities analysts clearly believe Dutch Bros is more favorable than Life Time Group.

Summary

Dutch Bros beats Life Time Group on 8 of the 15 factors compared between the two stocks.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.

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.