Critical Review: Life Time Group (NYSE:LTH) versus Dutch Bros (NYSE:BROS)

Life Time Group (NYSE:LTH) and Dutch Bros (NYSE:BROS) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares Life Time Group and Dutch Bros”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life Time Group	$3.18 billion	2.79	$373.67 million	$1.84	21.60
Dutch Bros	$1.88 billion	3.56	$79.84 million	$0.72	53.26

Life Time Group has higher revenue and earnings than Dutch Bros. Life Time Group is trading at a lower price-to-earnings ratio than Dutch Bros, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Life Time Group has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500.

Profitability

This table compares Life Time Group and Dutch Bros’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life Time Group	13.07%	10.56%	4.13%
Dutch Bros	4.91%	10.01%	2.95%

Insider & Institutional Ownership

79.4% of Life Time Group shares are owned by institutional investors. Comparatively, 85.5% of Dutch Bros shares are owned by institutional investors. 13.3% of Life Time Group shares are owned by insiders. Comparatively, 38.9% of Dutch Bros shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Life Time Group and Dutch Bros, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Time Group	0	0	13	2	3.13
Dutch Bros	0	4	18	2	2.92

Life Time Group currently has a consensus price target of $55.31, indicating a potential upside of 39.15%. Dutch Bros has a consensus price target of $75.36, indicating a potential upside of 96.54%. Given Dutch Bros’ higher probable upside, analysts clearly believe Dutch Bros is more favorable than Life Time Group.

About Life Time Group

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.