Cheesecake Factory (NASDAQ:CAKE – Get Free Report) and Life Time Group (NYSE:LTH – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Earnings & Valuation
This table compares Cheesecake Factory and Life Time Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cheesecake Factory | $3.88 billion | 1.39 | $148.43 million | $3.69 | 29.31 |
| Life Time Group | $3.18 billion | 2.83 | $373.67 million | $1.84 | 21.91 |
Analyst Ratings
This is a summary of recent ratings for Cheesecake Factory and Life Time Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cheesecake Factory | 2 | 10 | 5 | 1 | 2.28 |
| Life Time Group | 0 | 0 | 13 | 2 | 3.13 |
Cheesecake Factory currently has a consensus price target of $86.87, suggesting a potential downside of 19.67%. Life Time Group has a consensus price target of $55.31, suggesting a potential upside of 37.21%. Given Life Time Group’s stronger consensus rating and higher possible upside, analysts clearly believe Life Time Group is more favorable than Cheesecake Factory.
Volatility and Risk
Cheesecake Factory has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Life Time Group has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Profitability
This table compares Cheesecake Factory and Life Time Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cheesecake Factory | 4.61% | 43.97% | 6.18% |
| Life Time Group | 13.07% | 10.56% | 4.13% |
Insider and Institutional Ownership
94.5% of Cheesecake Factory shares are owned by institutional investors. Comparatively, 79.4% of Life Time Group shares are owned by institutional investors. 8.0% of Cheesecake Factory 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Life Time Group beats Cheesecake Factory on 9 of the 15 factors compared between the two stocks.
About Cheesecake Factory
The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors. It operates restaurants under the brands comprising The Cheesecake Factory, North Italia, Flower Child, Fox Restaurant Concepts. The Cheesecake Factory Incorporated was founded in 1972 and is headquartered in Calabasas, California.
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.
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