Analyzing Yum! Brands (NYSE:YUM) and Global Business Travel Group (NYSE:GBTG)

Global Business Travel Group (NYSE:GBTG) and Yum! Brands (NYSE:YUM) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Global Business Travel Group and Yum! Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Business Travel Group	2.77%	2.47%	0.80%
Yum! Brands	25.42%	-24.57%	22.24%

Analyst Recommendations

This is a breakdown of current ratings for Global Business Travel Group and Yum! Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Business Travel Group	0	5	2	0	2.29
Yum! Brands	0	12	14	0	2.54

Global Business Travel Group currently has a consensus target price of $8.89, suggesting a potential downside of 6.47%. Yum! Brands has a consensus target price of $171.65, suggesting a potential upside of 14.45%. Given Yum! Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Yum! Brands is more favorable than Global Business Travel Group.

Valuation & Earnings

This table compares Global Business Travel Group and Yum! Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Business Travel Group	$3.18 billion	1.56	$109.00 million	$0.17	55.88
Yum! Brands	$8.21 billion	4.98	$1.56 billion	$7.95	18.87

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

Volatility and Risk

Global Business Travel Group has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Yum! Brands has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Insider and Institutional Ownership

82.5% of Global Business Travel Group shares are owned by institutional investors. Comparatively, 82.4% of Yum! Brands shares are owned by institutional investors. 5.4% of Global Business Travel Group shares are owned by company insiders. Comparatively, 0.1% of Yum! Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Yum! Brands beats Global Business Travel Group on 9 of the 14 factors compared between the two stocks.

About Global Business Travel Group

Global Business Travel Group, Inc. provides business-to-business (B2B) travel platform in the United States and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers, such as airlines, hotels, ground transportation, and aggregators; and third-party travel agencies. It also provides consulting, meetings and events planning, and outsourced services. Global Business Travel Group, Inc. is based in New York, New York.

About Yum! Brands

Yum! Brands, Inc., together with its subsidiaries, develops, operates, and franchises quick service restaurants worldwide. The company operates through the KFC Division, the Taco Bell Division, the Pizza Hut Division, and the Habit Burger Grill Division segments. It also operates restaurants under the KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill brands, which specialize in chicken, pizza, made-to-order chargrilled burgers, sandwiches, Mexican-style food categories, and other food products. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to Yum! Brands, Inc. in May 2002. Yum! Brands, Inc. was incorporated in 1997 and is headquartered in Louisville, Kentucky.