H World Group (NASDAQ:HTHT – Get Free Report) and BT Brands (NASDAQ:BTBD – 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 dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Volatility and Risk
H World Group has a beta of 0.12, indicating that its stock price is 88% less 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.
Profitability
This table compares H World Group and BT Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| H World Group | 18.90% | 41.05% | 8.07% |
| BT Brands | -4.57% | -8.99% | -5.45% |
Insider and Institutional Ownership
46.4% of H World Group shares are owned by institutional investors. Comparatively, 0.4% of BT Brands shares are owned by institutional investors. 49.4% of H World Group shares are owned by company insiders. Comparatively, 19.6% of BT Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for H World Group and BT Brands, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| H World Group | 0 | 1 | 3 | 0 | 2.75 |
| BT Brands | 1 | 0 | 0 | 0 | 1.00 |
H World Group presently has a consensus target price of $61.20, suggesting a potential upside of 21.83%. Given H World Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe H World Group is more favorable than BT Brands.
Valuation and Earnings
This table compares H World Group and BT Brands”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| H World Group | $3.62 billion | 4.38 | $726.00 million | $2.27 | 22.13 |
| BT Brands | $13.49 million | 0.81 | -$690,000.00 | ($0.09) | -19.67 |
H World Group has higher revenue and earnings than BT Brands. BT Brands is trading at a lower price-to-earnings ratio than H World Group, indicating that it is currently the more affordable of the two stocks.
Summary
H World Group beats BT Brands on 13 of the 14 factors compared between the two stocks.
About H World Group
H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.
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.
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