Target Hospitality (NASDAQ:TH – Get Free Report) and Xponential Fitness (NYSE:XPOF – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Volatility & Risk
Target Hospitality has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Profitability
This table compares Target Hospitality and Xponential Fitness’ 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% |
| Xponential Fitness | -13.64% | -3.40% | -0.66% |
Institutional & Insider Ownership
32.4% of Target Hospitality shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 3.8% of Target Hospitality shares are held by company insiders. Comparatively, 24.1% 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 company is poised for long-term growth.
Earnings and Valuation
This table compares Target Hospitality and Xponential Fitness”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Target Hospitality | $320.64 million | 3.69 | -$37.12 million | ($0.38) | -31.24 |
| Xponential Fitness | $314.88 million | 0.72 | -$33.79 million | ($1.47) | -3.11 |
Xponential Fitness has lower revenue, but higher earnings than Target Hospitality. Target Hospitality is trading at a lower price-to-earnings ratio than Xponential Fitness, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Target Hospitality and Xponential Fitness, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Target Hospitality | 1 | 0 | 4 | 1 | 2.83 |
| Xponential Fitness | 1 | 10 | 1 | 0 | 2.00 |
Target Hospitality presently has a consensus price target of $25.20, suggesting a potential upside of 112.25%. Xponential Fitness has a consensus price target of $6.50, suggesting a potential upside of 42.39%. Given Target Hospitality’s stronger consensus rating and higher probable upside, equities analysts plainly believe Target Hospitality is more favorable than Xponential Fitness.
Summary
Target Hospitality beats Xponential Fitness 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 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.
Receive News & Ratings for Target Hospitality Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Target Hospitality and related companies with MarketBeat.com's FREE daily email newsletter.
