BT Brands (NASDAQ:BTBD – Get Free Report) and PENN Entertainment (NASDAQ:PENN – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares BT Brands and PENN Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BT Brands | -4.57% | -8.99% | -5.45% |
| PENN Entertainment | -12.66% | 2.93% | 0.39% |
Volatility & Risk
BT Brands has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, PENN Entertainment has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.
Valuation and Earnings
This table compares BT Brands and PENN Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BT Brands | $13.49 million | 0.76 | -$690,000.00 | ($0.09) | -18.44 |
| PENN Entertainment | $6.96 billion | 0.28 | -$843.10 million | ($6.36) | -2.28 |
BT Brands has higher earnings, but lower revenue than PENN Entertainment. BT Brands is trading at a lower price-to-earnings ratio than PENN Entertainment, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
0.4% of BT Brands shares are owned by institutional investors. Comparatively, 91.7% of PENN Entertainment shares are owned by institutional investors. 19.6% of BT Brands shares are owned by company insiders. Comparatively, 3.2% of PENN Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for BT Brands and PENN Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BT Brands | 1 | 0 | 0 | 0 | 1.00 |
| PENN Entertainment | 1 | 5 | 14 | 1 | 2.71 |
PENN Entertainment has a consensus target price of $23.61, suggesting a potential upside of 62.84%. Given PENN Entertainment’s stronger consensus rating and higher probable upside, analysts clearly believe PENN Entertainment is more favorable than BT Brands.
Summary
PENN Entertainment beats BT Brands on 10 of the 15 factors compared between the two stocks.
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.
About PENN Entertainment
PENN Entertainment, Inc., together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands. The company's portfolio also includes PENN Play, customer loyalty program, which offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Hollywood Casino, Hollywood Gaming, L'Auberge, PENN Play, theScore, theScore Bet, theScore esports, and M Resort. The company was formerly known as Penn National Gaming, Inc. and changed its name to PENN Entertainment, Inc. in August 2022. PENN Entertainment, Inc. was founded in 1972 and is based in Wyomissing, Pennsylvania.
Receive News & Ratings for BT Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BT Brands and related companies with MarketBeat.com's FREE daily email newsletter.
