Critical Analysis: Giant Group (OTCMKTS:GGLT) versus Dutch Bros (NYSE:BROS)

Giant Group (OTCMKTS:GGLT) and Dutch Bros (NYSE:BROS) are both consumer cyclical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Giant Group and Dutch Bros’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Giant Group	N/A	N/A	N/A
Dutch Bros	1.95%	3.99%	1.41%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Giant Group and Dutch Bros, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giant Group	0	0	0	0	N/A
Dutch Bros	0	3	8	0	2.73

Dutch Bros has a consensus target price of $40.20, indicating a potential upside of 15.65%. Given Dutch Bros’ higher probable upside, analysts plainly believe Dutch Bros is more favorable than Giant Group.

Institutional and Insider Ownership

85.5% of Dutch Bros shares are owned by institutional investors. 69.7% of Giant Group shares are owned by company insiders. Comparatively, 46.5% of Dutch Bros shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Giant Group and Dutch Bros”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Giant Group	N/A	N/A	N/A	N/A	N/A
Dutch Bros	$1.12 billion	5.51	$1.72 million	$0.18	193.11

Dutch Bros has higher revenue and earnings than Giant Group.

Volatility & Risk

Giant Group has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Dutch Bros has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.

Summary

Dutch Bros beats Giant Group on 8 of the 9 factors compared between the two stocks.

About Giant Group

Giant Group, Ltd., through its equity investment in Checkers Drive-In Restaurants, Inc., engages in the double drive-thru hamburger restaurant business in the United States. The company develops, produces, owns, operates, and franchises quick service double drive-thru restaurants under two brand names, Checkers and Rally’s Hamburgers. The restaurants provide automobile-oriented service. As of December 29, 2003, Checkers and its franchisees owned 405 Checkers restaurants and 379 Rally’s restaurants operating primarily in the United States. Giant Group was founded in 1899 and is based in Beverly Hills, California.

About Dutch Bros

Dutch Bros Inc., together with its subsidiaries, operates and franchises drive-thru shops in the United States. The company operates through Company-Operated Shops and Franchising and Other segments. It serves through company-operated shops and online channels under Dutch Bros; Dutch Bros Coffee; Dutch Bros Rebel; Dutch Bros; and Blue Rebel brands. Dutch Bros Inc. was founded in 1992 and is headquartered in Grants Pass, Oregon.