Carnival (NYSE:CCL – Get Free Report) and Good Times Restaurants (NASDAQ:GTIM – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and target prices for Carnival and Good Times Restaurants, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carnival | 0 | 6 | 21 | 1 | 2.82 |
| Good Times Restaurants | 1 | 0 | 0 | 0 | 1.00 |
Carnival presently has a consensus price target of $34.14, indicating a potential upside of 28.61%. Given Carnival’s stronger consensus rating and higher possible upside, research analysts clearly believe Carnival is more favorable than Good Times Restaurants.
Volatility & Risk
Valuation & Earnings
This table compares Carnival and Good Times Restaurants”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carnival | $26.62 billion | 1.34 | $2.76 billion | $2.29 | 11.59 |
| Good Times Restaurants | $141.63 million | 0.11 | $1.02 million | $0.21 | 7.10 |
Carnival has higher revenue and earnings than Good Times Restaurants. Good Times Restaurants is trading at a lower price-to-earnings ratio than Carnival, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Carnival and Good Times Restaurants’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carnival | 11.37% | 24.83% | 6.32% |
| Good Times Restaurants | 1.65% | 6.47% | 2.73% |
Insider and Institutional Ownership
67.2% of Carnival shares are held by institutional investors. Comparatively, 12.1% of Good Times Restaurants shares are held by institutional investors. 7.9% of Carnival shares are held by insiders. Comparatively, 26.5% of Good Times Restaurants shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Carnival beats Good Times Restaurants on 14 of the 15 factors compared between the two stocks.
About Carnival
Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.
About Good Times Restaurants
Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. It operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. The company was incorporated in 1987 and is based in Golden, Colorado.
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