Sweetgreen (NYSE:SG – Get Rating) and BT Brands (NASDAQ:BTBD – Get Rating) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.
Profitability
This table compares Sweetgreen and BT Brands' net margins, return on equity and return on assets.
Get Sweetgreen alerts:| Net Margins | Return on Equity | Return on Assets | |
| Sweetgreen | -45.27% | -30.98% | -26.19% |
| BT Brands | -1.16% | -1.47% | -1.02% |
Risk and Volatility
Sweetgreen has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, BT Brands has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Institutional and Insider Ownership
84.3% of Sweetgreen shares are held by institutional investors. Comparatively, 0.1% of BT Brands shares are held by institutional investors. 27.5% of Sweetgreen shares are held by company insiders. Comparatively, 15.6% of BT Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Sweetgreen and BT Brands, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sweetgreen | 0 | 0 | 0 | 0 | N/A |
| BT Brands | 0 | 0 | 0 | 0 | N/A |
Sweetgreen currently has a consensus target price of 19.00, indicating a potential upside of 121.70%. Given Sweetgreen's higher probable upside, equities analysts clearly believe Sweetgreen is more favorable than BT Brands.
Valuation and Earnings
This table compares Sweetgreen and BT Brands' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sweetgreen | $339.87 million | 2.79 | -$153.18 million | -2.38 | -3.60 |
| BT Brands | $8.45 million | 1.40 | $610,000.00 | ($0.04) | -45.75 |
BT Brands has lower revenue, but higher earnings than Sweetgreen. BT Brands is trading at a lower price-to-earnings ratio than Sweetgreen, indicating that it is currently the more affordable of the two stocks.
Summary
Sweetgreen beats BT Brands on 7 of the 12 factors compared between the two stocks.
About Sweetgreen
(Get Rating)
Sweetgreen, Inc., together with its subsidiaries, develops and operates fast-casual restaurants serving healthy foods prepared from seasonal and organic ingredients. The company also accepts orders through its online and mobile ordering platforms, as well as sells gift cards that can be redeemed in its restaurants. As of September 26, 2021, it owned and operated 140 restaurants in 13 states and Washington, D.C. The company was founded in 2006 and is headquartered in Los Angeles, California.
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.
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