Good Times Restaurants (NASDAQ:GTIM) and Carnival (NYSE:CCL) Financial Survey

Good Times Restaurants (NASDAQ:GTIM) and Carnival (NYSE:CCL) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Good Times Restaurants and Carnival’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Good Times Restaurants	1.65%	6.47%	2.73%
Carnival	11.37%	24.83%	6.32%

Earnings and Valuation

This table compares Good Times Restaurants and Carnival”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Good Times Restaurants	$141.63 million	0.11	$1.02 million	$0.21	7.10
Carnival	$26.62 billion	1.32	$2.76 billion	$2.29	11.41

Carnival has higher revenue and earnings than Good Times Restaurants. Good Times Restaurants is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Good Times Restaurants and Carnival, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Good Times Restaurants	1	0	0	0	1.00
Carnival	0	6	21	1	2.82

Carnival has a consensus price target of $34.14, indicating a potential upside of 30.61%. Given Carnival’s stronger consensus rating and higher possible upside, analysts clearly believe Carnival is more favorable than Good Times Restaurants.

Risk & Volatility

Good Times Restaurants has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Carnival has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500.

Insider and Institutional Ownership

12.1% of Good Times Restaurants shares are held by institutional investors. Comparatively, 67.2% of Carnival shares are held by institutional investors. 26.5% of Good Times Restaurants shares are held by company insiders. Comparatively, 7.9% of Carnival shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Carnival beats Good Times Restaurants on 14 of the 15 factors compared between the two stocks.

About Good Times Restaurants

Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. It operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. The company was incorporated in 1987 and is based in Golden, Colorado.

About Carnival

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.