Head-To-Head Contrast: Town Sports International (OTCMKTS:CLUBQ) vs. Xponential Fitness (NYSE:XPOF)

Town Sports International (OTCMKTS:CLUBQ) and Xponential Fitness (NYSE:XPOF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

58.6% of Xponential Fitness shares are held by institutional investors. 32.2% of Town Sports International shares are held by company insiders. Comparatively, 42.3% of Xponential Fitness shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Town Sports International and Xponential Fitness, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Town Sports International	0	0	0	0	0.00
Xponential Fitness	1	6	2	1	2.30

Xponential Fitness has a consensus target price of $11.69, indicating a potential upside of 40.63%. Given Xponential Fitness’ stronger consensus rating and higher possible upside, analysts clearly believe Xponential Fitness is more favorable than Town Sports International.

Earnings and Valuation

This table compares Town Sports International and Xponential Fitness”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Town Sports International	N/A	N/A	N/A	N/A	N/A
Xponential Fitness	$320.35 million	1.27	-$64.95 million	($1.65)	-5.04

Town Sports International has higher earnings, but lower revenue than Xponential Fitness.

Profitability

This table compares Town Sports International and Xponential Fitness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Town Sports International	N/A	N/A	N/A
Xponential Fitness	-15.30%	-6.85%	5.49%

Summary

Xponential Fitness beats Town Sports International on 8 of the 10 factors compared between the two stocks.

About Town Sports International

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment. Its clubs also provide amenities, including swimming pools, racquet and basketball courts, and functional training zones, as well as babysitting services; and fee-based program services, which comprise personal and small group training, children's programs, and summer camps for kids. The company sells its memberships through direct sales at the club level, as well as corporate and group sales; and through its Websites. As of December 31, 2019, it owned and operated 186 fitness clubs. The company was founded in 1973 and is based in Jupiter, Florida.

About Xponential Fitness

Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in North America. It offers pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training, and yoga services under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands. Xponential Fitness, Inc. was founded in 2017 and is headquartered in Irvine, California.