Life Time Group (NYSE:LTH – Get Free Report) and Red Robin Gourmet Burgers (NASDAQ:RRGB – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Profitability
This table compares Life Time Group and Red Robin Gourmet Burgers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Life Time Group | 13.07% | 10.56% | 4.13% |
| Red Robin Gourmet Burgers | -2.55% | N/A | -2.65% |
Risk and Volatility
Life Time Group has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Life Time Group | 0 | 0 | 13 | 2 | 3.13 |
| Red Robin Gourmet Burgers | 1 | 1 | 2 | 0 | 2.25 |
Life Time Group currently has a consensus target price of $55.31, indicating a potential upside of 36.83%. Red Robin Gourmet Burgers has a consensus target price of $8.33, indicating a potential downside of 0.69%. Given Life Time Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Life Time Group is more favorable than Red Robin Gourmet Burgers.
Valuation and Earnings
This table compares Life Time Group and Red Robin Gourmet Burgers”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Life Time Group | $3.00 billion | 3.02 | $373.67 million | $1.84 | 21.97 |
| Red Robin Gourmet Burgers | $1.19 billion | 0.13 | -$23.28 million | ($1.69) | -4.97 |
Life Time Group has higher revenue and earnings than Red Robin Gourmet Burgers. Red Robin Gourmet Burgers is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
79.4% of Life Time Group shares are owned by institutional investors. Comparatively, 84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. 13.3% of Life Time Group shares are owned by insiders. Comparatively, 4.1% of Red Robin Gourmet Burgers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Life Time Group beats Red Robin Gourmet Burgers on 13 of the 15 factors compared between the two stocks.
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.
About Red Robin Gourmet Burgers
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.
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