Financial Survey: Life Time Group (NYSE:LTH) versus Red Robin Gourmet Burgers (NASDAQ:RRGB)

Red Robin Gourmet Burgers (NASDAQ:RRGB) and Life Time Group (NYSE:LTH) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Red Robin Gourmet Burgers and Life Time Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Robin Gourmet Burgers	-2.55%	N/A	-2.65%
Life Time Group	13.07%	10.56%	4.13%

Volatility & Risk

Red Robin Gourmet Burgers has a beta of 2.49, indicating that its share price is 149% more volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Valuation and Earnings

This table compares Red Robin Gourmet Burgers 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
Red Robin Gourmet Burgers	$1.21 billion	0.13	-$23.28 million	($1.69)	-5.11
Life Time Group	$3.00 billion	2.97	$373.67 million	$1.84	21.60

Life Time 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 Life Time Group, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

84.0% of Red Robin Gourmet Burgers shares are owned by institutional investors. Comparatively, 79.4% of Life Time Group shares are owned by institutional investors. 4.1% of Red Robin Gourmet Burgers shares are owned by company insiders. Comparatively, 13.3% of Life Time Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Red Robin Gourmet Burgers and Life Time Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Robin Gourmet Burgers	2	0	2	0	2.00
Life Time Group	0	0	13	2	3.13

Red Robin Gourmet Burgers presently has a consensus price target of $8.33, indicating a potential downside of 3.44%. Life Time Group has a consensus price target of $55.31, indicating a potential upside of 39.14%. Given Life Time Group’s stronger consensus rating and higher possible upside, analysts clearly believe Life Time Group is more favorable than Red Robin Gourmet Burgers.

Summary

Life Time Group beats Red Robin Gourmet Burgers on 12 of the 14 factors compared between the two stocks.

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.

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.