Dutch Bros (NYSE:BROS – Get Free Report) and Life Time Group (NYSE:LTH – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Insider & Institutional 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 company insiders. Comparatively, 13.3% of Life Time Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Dutch Bros has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
Earnings & Valuation
This table compares Dutch Bros and Life Time Group”s gross 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 | 3.59 | $79.84 million | $0.78 | 43.18 |
| Life Time Group | $3.00 billion | 3.41 | $373.67 million | $1.84 | 24.71 |
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 breakdown of current ratings and price targets for Dutch Bros and Life Time Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dutch Bros | 0 | 4 | 21 | 2 | 2.93 |
| Life Time Group | 0 | 1 | 15 | 0 | 2.94 |
Dutch Bros currently has a consensus target price of $61.08, suggesting a potential upside of 81.34%. Life Time Group has a consensus target price of $56.14, suggesting a potential upside of 23.46%. Given Dutch Bros’ higher possible upside, 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. is a drive-through beverage company that operates the Dutch Bros coffee shop brand. Founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma, the company began as a small coffee pushcart and has grown into a multistate U.S. chain. Dutch Bros has expanded from its roots in the western United States into additional regions across the country. Christine Barone serves as the company’s chief executive officer, and co-founder Travis Boersma is its executive chairman.
About Life Time Group
Life Time Group Holdings, Inc. operates a network of fitness and wellness clubs in the United States and Canada. Its locations combine fitness facilities with services and amenities such as group exercise classes, personal training, swimming, racquet sports, spa services, and dining. The company also offers digital fitness and wellness content through its app and other platforms, complementing its in-person club services. Its clubs are designed to serve individuals and families with a range of fitness, recreation, and wellness programs.
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