Analyzing Town Sports International (OTCMKTS:CLUBQ) and Lucky Strike Entertainment (NYSE:LUCK)

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

Analyst Recommendations

This is a breakdown of current recommendations for Lucky Strike Entertainment and Town Sports International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lucky Strike Entertainment	1	4	4	0	2.33
Town Sports International	0	0	0	0	0.00

Lucky Strike Entertainment presently has a consensus price target of $11.64, suggesting a potential upside of 75.08%. Given Lucky Strike Entertainment’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lucky Strike Entertainment is more favorable than Town Sports International.

Insider & Institutional Ownership

68.1% of Lucky Strike Entertainment shares are held by institutional investors. 84.2% of Lucky Strike Entertainment shares are held by company insiders. Comparatively, 32.2% of Town Sports International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Lucky Strike Entertainment and Town Sports International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lucky Strike Entertainment	-7.09%	N/A	-2.74%
Town Sports International	N/A	N/A	N/A

Earnings and Valuation

This table compares Lucky Strike Entertainment and Town Sports International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucky Strike Entertainment	$1.20 billion	0.77	-$10.02 million	($0.65)	-10.23
Town Sports International	N/A	N/A	N/A	N/A	N/A

Town Sports International has lower revenue, but higher earnings than Lucky Strike Entertainment.

Summary

Lucky Strike Entertainment beats Town Sports International on 6 of the 8 factors compared between the two stocks.

About Lucky Strike Entertainment

Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.

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.