Contrasting Dine Brands Global (NYSE:DIN) and BT Brands (NASDAQ:BTBD)

Dine Brands Global (NYSE:DIN) and BT Brands (NASDAQ:BTBD) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dine Brands Global and BT Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dine Brands Global	1	9	0	0	1.90
BT Brands	1	0	0	0	1.00

Dine Brands Global currently has a consensus target price of $33.25, suggesting a potential downside of 8.62%. Given Dine Brands Global’s stronger consensus rating and higher probable upside, equities analysts clearly believe Dine Brands Global is more favorable than BT Brands.

Profitability

This table compares Dine Brands Global and BT Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dine Brands Global	0.43%	-19.01%	3.14%
BT Brands	-4.57%	-8.99%	-5.45%

Institutional and Insider Ownership

92.8% of Dine Brands Global shares are owned by institutional investors. Comparatively, 0.4% of BT Brands shares are owned by institutional investors. 6.7% of Dine Brands Global shares are owned by insiders. Comparatively, 19.6% of BT Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Dine Brands Global has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dine Brands Global and BT Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dine Brands Global	$879.30 million	0.51	$17.10 million	$0.36	101.07
BT Brands	$13.49 million	0.72	-$690,000.00	($0.09)	-17.43

Dine Brands Global has higher revenue and earnings than BT Brands. BT Brands is trading at a lower price-to-earnings ratio than Dine Brands Global, indicating that it is currently the more affordable of the two stocks.

Summary

Dine Brands Global beats BT Brands on 10 of the 13 factors compared between the two stocks.

About Dine Brands Global

Dine Brands Global is a restaurant company that franchises and operates Applebee’s Neighborhood Grill + Bar, IHOP and Fuzzy’s Taco Shop. Its brands serve a range of meals, including casual-dining fare, breakfast and pancakes, and Mexican-inspired food. The company’s business centers on its restaurant brands and franchise network, supported by services such as marketing, training and operational guidance for franchisees. IHOP traces its history to 1958, and the company added Applebee’s in 2007. DineEquity adopted the Dine Brands Global name in 2018, and Fuzzy’s Taco Shop joined its portfolio in 2022.

About BT Brands

BT Brands, Inc. is a restaurant holding company that owns and operates franchised and company-operated restaurants in the United States. Its portfolio includes Burger Time restaurants, which offer quick-service hamburgers, sandwiches, fries, shakes and other menu items. The company has also operated restaurants under additional concepts, including Boss’ Pizza and Chicken, a fast-casual chain serving pizza, chicken and related food products. BT Brands’ operations have been concentrated in the Upper Midwest and other select U.S. markets, including North Dakota, Minnesota, Montana and Oregon.