Comparing BT Brands (NASDAQ:BTBD) and Churchill Downs (NASDAQ:CHDN)

Churchill Downs (NASDAQ:CHDN) and BT Brands (NASDAQ:BTBD) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Churchill Downs and BT Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Churchill Downs	13.82%	42.16%	6.31%
BT Brands	-4.57%	-8.99%	-5.45%

Analyst Ratings

This is a summary of current recommendations and price targets for Churchill Downs and BT Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Churchill Downs	0	1	9	0	2.90
BT Brands	1	0	0	0	1.00

Churchill Downs currently has a consensus target price of $134.56, indicating a potential upside of 64.69%. Given Churchill Downs’ stronger consensus rating and higher probable upside, research analysts clearly believe Churchill Downs is more favorable than BT Brands.

Institutional and Insider Ownership

82.6% of Churchill Downs shares are owned by institutional investors. Comparatively, 0.4% of BT Brands shares are owned by institutional investors. 5.9% of Churchill Downs 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Churchill Downs	$2.93 billion	1.95	$383.00 million	$5.83	14.01
BT Brands	$13.49 million	0.74	-$690,000.00	($0.09)	-17.94

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

Volatility & Risk

Churchill Downs has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Summary

Churchill Downs beats BT Brands on 13 of the 14 factors compared between the two stocks.

About Churchill Downs

Churchill Downs Incorporated operates as a racing, online wagering, and gaming entertainment company in the United States. It operates through three segments: Live and Historical Racing, TwinSpires, and Gaming. The company operates pari-mutuel gaming entertainment venues; TwinSpires, an online wagering platform for horse racing, sports, and iGaming; retail sports books; casino gaming; and Terre Haute Casino Resort. It also offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides the Bloodstock Research Information Services platform for horse racing statistical data. In addition, the company manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities, and other pari-mutuel wagering businesses. Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.

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.