Bowlero (NYSE:BOWL – Get Free Report) and Xponential Fitness (NYSE:XPOF – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Institutional & Insider Ownership
68.1% of Bowlero shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 79.9% of Bowlero shares are held by insiders. Comparatively, 24.1% of Xponential Fitness shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Bowlero has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bowlero | 0 | 0 | 0 | 0 | 0.00 |
| Xponential Fitness | 1 | 8 | 2 | 0 | 2.09 |
Xponential Fitness has a consensus target price of $8.44, indicating a potential upside of 29.31%. Given Xponential Fitness’ stronger consensus rating and higher probable upside, analysts clearly believe Xponential Fitness is more favorable than Bowlero.
Earnings & Valuation
This table compares Bowlero 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 | |
| Bowlero | $1.19 billion | 0.83 | -$83.58 million | ($0.61) | -10.98 |
| Xponential Fitness | $314.88 million | 1.02 | -$33.79 million | ($1.38) | -4.73 |
Xponential Fitness has lower revenue, but higher earnings than Bowlero. Bowlero is trading at a lower price-to-earnings ratio than Xponential Fitness, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bowlero and Xponential Fitness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bowlero | -6.63% | -31.58% | 1.31% |
| Xponential Fitness | -11.28% | -3.40% | 3.29% |
Summary
Xponential Fitness beats Bowlero on 9 of the 14 factors compared between the two stocks.
About Bowlero
Bowlero Corp. operates bowling entertainment centers under the AMF, Bowlmor Lanes, and Bowlero brand names. The company also provides hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. It operates bowling centers in the United States, Mexico, and Canada. The company is headquartered in Mechanicsville, Virginia.
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.
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