Critical Contrast: Global Business Travel Group (NYSE:GBTG) and Red Robin Gourmet Burgers (NASDAQ:RRGB)

Global Business Travel Group (NYSE:GBTG) and Red Robin Gourmet Burgers (NASDAQ:RRGB) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

This is a summary of recent recommendations for Global Business Travel Group and Red Robin Gourmet Burgers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Business Travel Group	0	6	2	0	2.25
Red Robin Gourmet Burgers	2	0	2	0	2.00

Global Business Travel Group currently has a consensus target price of $8.90, suggesting a potential downside of 6.32%. Red Robin Gourmet Burgers has a consensus target price of $8.33, suggesting a potential upside of 1.63%. Given Red Robin Gourmet Burgers’ higher probable upside, analysts plainly believe Red Robin Gourmet Burgers is more favorable than Global Business Travel Group.

Valuation and Earnings

This table compares Global Business Travel Group and Red Robin Gourmet Burgers”s top-line revenue, earnings per share (EPS) 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
Red Robin Gourmet Burgers	$1.21 billion	0.13	-$23.28 million	($1.69)	-4.85

Global Business Travel Group has higher revenue and earnings than Red Robin Gourmet Burgers. Red Robin Gourmet Burgers 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.

Profitability

This table compares Global Business Travel Group and Red Robin Gourmet Burgers’ 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%
Red Robin Gourmet Burgers	-2.55%	N/A	-2.65%

Volatility and Risk

Global Business Travel Group has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Red Robin Gourmet Burgers has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Institutional and Insider Ownership

82.5% of Global Business Travel Group shares are held by institutional investors. Comparatively, 84.0% of Red Robin Gourmet Burgers shares are held by institutional investors. 5.4% of Global Business Travel Group shares are held by insiders. Comparatively, 4.1% of Red Robin Gourmet Burgers shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Global Business Travel Group beats Red Robin Gourmet Burgers on 9 of the 12 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 Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. The company was founded in 1969 and is based in Englewood, Colorado.