Contrasting OneSpaWorld (NASDAQ:OSW) & Target Hospitality (NASDAQ:TH)

Target Hospitality (NASDAQ:TH) and OneSpaWorld (NASDAQ:OSW) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Institutional & Insider Ownership

32.4% of Target Hospitality shares are held by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are held by institutional investors. 68.0% of Target Hospitality shares are held by insiders. Comparatively, 3.9% of OneSpaWorld shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Target Hospitality has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Target Hospitality and OneSpaWorld, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	1	0	2	1	2.75
OneSpaWorld	0	0	7	1	3.13

Target Hospitality currently has a consensus target price of $13.00, suggesting a potential upside of 60.69%. OneSpaWorld has a consensus target price of $24.60, suggesting a potential upside of 14.47%. Given Target Hospitality’s higher possible upside, analysts clearly believe Target Hospitality is more favorable than OneSpaWorld.

Earnings and Valuation

This table compares Target Hospitality and OneSpaWorld”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target Hospitality	$386.27 million	2.09	$71.26 million	($0.11)	-73.55
OneSpaWorld	$895.02 million	2.45	$72.86 million	$0.71	30.27

OneSpaWorld has higher revenue and earnings than Target Hospitality. Target Hospitality is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Target Hospitality and OneSpaWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	-3.08%	-1.78%	-1.24%
OneSpaWorld	7.90%	16.38%	12.27%

Summary

OneSpaWorld beats Target Hospitality on 11 of the 14 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 OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.