BT Brands (NASDAQ:BTBD – Get Rating) and Meritage Hospitality Group (OTCMKTS:MHGU – Get Rating) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and price targets for BT Brands and Meritage Hospitality Group, as provided by MarketBeat.
Get BT Brands alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BT Brands | 0 | 0 | 0 | 0 | N/A |
| Meritage Hospitality Group | 0 | 0 | 0 | 0 | N/A |
Institutional & Insider Ownership
0.1% of BT Brands shares are owned by institutional investors. 15.6% of BT Brands shares are owned by insiders. Comparatively, 67.8% of Meritage Hospitality Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.Earnings & Valuation
This table compares BT Brands and Meritage Hospitality Group's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BT Brands | $8.45 million | 1.31 | $610,000.00 | ($0.04) | -42.75 |
| Meritage Hospitality Group | $577.13 million | 0.21 | $17.44 million | $1.29 | 14.34 |
Meritage Hospitality Group has higher revenue and earnings than BT Brands. BT Brands is trading at a lower price-to-earnings ratio than Meritage Hospitality Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BT Brands and Meritage Hospitality Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BT Brands | -1.16% | -1.47% | -1.02% |
| Meritage Hospitality Group | 1.99% | 10.62% | 1.60% |
Summary
Meritage Hospitality Group beats BT Brands on 8 of the 10 factors compared between the two stocks.
About BT Brands
(Get Rating)
BT Brands, Inc. owns and operates fast-food restaurants in the north central region of United States. The company operates nine 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, 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.
About Meritage Hospitality Group
(Get Rating)
Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Morning Belle, Stan's Tacos, Freighters Eatery & Taproom, and Twisted Roosters brand names. As of January 2, 2022, it operated 337 restaurants in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was incorporated in 1986 and is headquartered in Grand Rapids, Michigan.
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