Target Hospitality (NASDAQ:TH – Get Free Report) and Noodles & Company (NASDAQ:NDLS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Earnings & Valuation
This table compares Target Hospitality and Noodles & Company”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Target Hospitality | $347.37 million | 2.99 | -$37.12 million | ($0.38) | -27.42 |
| Noodles & Company | $495.09 million | 0.18 | -$42.57 million | ($4.01) | -3.75 |
Target Hospitality has higher earnings, but lower revenue than Noodles & Company. Target Hospitality is trading at a lower price-to-earnings ratio than Noodles & Company, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Target Hospitality and Noodles & Company’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Target Hospitality | -10.85% | -9.80% | -6.65% |
| Noodles & Company | -4.71% | N/A | -3.40% |
Risk & Volatility
Target Hospitality has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Noodles & Company has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Target Hospitality and Noodles & Company, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Target Hospitality | 1 | 0 | 4 | 1 | 2.83 |
| Noodles & Company | 1 | 1 | 0 | 0 | 1.50 |
Target Hospitality currently has a consensus target price of $25.20, suggesting a potential upside of 141.84%. Given Target Hospitality’s stronger consensus rating and higher probable upside, research analysts plainly believe Target Hospitality is more favorable than Noodles & Company.
Institutional and Insider Ownership
32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 65.7% of Noodles & Company shares are owned by institutional investors. 3.8% of Target Hospitality shares are owned by insiders. Comparatively, 2.8% of Noodles & Company shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Target Hospitality beats Noodles & Company on 9 of the 15 factors compared between the two stocks.
About Target Hospitality
Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.
About Noodles & Company
Noodles & Co. engages in the business of development and operation of fast-casual restaurants that serve noodle and pasta dishes, soups, salads, and appetizers. The firm also offers pleasant dining, pick-up, and delivery experiences by quickly preparing fresh food with friendly service. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.
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