Nathan’s Famous (NASDAQ:NATH – Get Free Report) and Life Time Group (NYSE:LTH – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Risk and Volatility
Nathan’s Famous has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
Valuation and Earnings
This table compares Nathan’s Famous and Life Time Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nathan’s Famous | $162.06 million | 2.57 | $20.02 million | $4.83 | 21.06 |
| Life Time Group | $3.00 billion | 3.02 | $373.67 million | $1.84 | 22.01 |
Life Time Group has higher revenue and earnings than Nathan’s Famous. Nathan’s Famous is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nathan’s Famous and Life Time Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nathan’s Famous | 11.78% | -187.25% | 34.31% |
| Life Time Group | 13.07% | 10.56% | 4.13% |
Analyst Recommendations
This is a summary of current ratings and target prices for Nathan’s Famous and Life Time Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nathan’s Famous | 0 | 0 | 1 | 0 | 3.00 |
| Life Time Group | 0 | 0 | 13 | 2 | 3.13 |
Life Time Group has a consensus target price of $55.31, suggesting a potential upside of 36.60%. Given Life Time Group’s stronger consensus rating and higher possible upside, analysts clearly believe Life Time Group is more favorable than Nathan’s Famous.
Insider and Institutional Ownership
66.5% of Nathan’s Famous shares are held by institutional investors. Comparatively, 79.4% of Life Time Group shares are held by institutional investors. 30.7% of Nathan’s Famous shares are held by insiders. Comparatively, 13.3% of Life Time Group shares are held 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.
Summary
Life Time Group beats Nathan’s Famous on 12 of the 15 factors compared between the two stocks.
About Nathan’s Famous
Nathan’s Famous, Inc. engages in the operation of franchised fast-food units. It is involved in the licensing, wholesaling, and retailing of products marketed under the Nathan’s Famous brand. The firm operates through the following business segments: Branded Product Program, Product Licensing, Restaurant Operations, and Corporate. The Branded Product Program segment markets and sells hot dog products. The Product Licensing segment is composed of royalties from licensing a variety of Nathan’s Famous products such as hotdogs, sausage and corned beef products, frozen French fries, and additional products through retail grocery channels and club stores. The Restaurant Operations segment deals with the sale of products at company-owned restaurants and fees and royalties from franchised restaurants. The Corporate segment includes administrative expenses such as executive management, finance, information technology, legal, insurance, corporate office costs, corporate incentive compensation, and compliance costs. The company was founded by Nathan Handwerker in 1916 and is headquartered in Jericho, NY.
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.
Receive News & Ratings for Nathan's Famous Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nathan's Famous and related companies with MarketBeat.com's FREE daily email newsletter.
