Xponential Fitness (NYSE:XPOF) and Target Hospitality (NASDAQ:TH) Financial Review

Xponential Fitness (NYSE:XPOF) and Target Hospitality (NASDAQ:TH) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	1	10	1	0	2.00
Target Hospitality	1	0	4	1	2.83

Xponential Fitness presently has a consensus price target of $6.50, suggesting a potential upside of 45.09%. Target Hospitality has a consensus price target of $25.20, suggesting a potential upside of 84.35%. Given Target Hospitality’s stronger consensus rating and higher probable upside, analysts plainly believe Target Hospitality is more favorable than Xponential Fitness.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-13.64%	-3.40%	-0.66%
Target Hospitality	-10.85%	-9.80%	-6.65%

Insider and Institutional Ownership

58.5% of Xponential Fitness shares are held by institutional investors. Comparatively, 32.4% of Target Hospitality shares are held by institutional investors. 24.1% of Xponential Fitness shares are held by insiders. Comparatively, 3.8% of Target Hospitality shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Xponential Fitness has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Valuation and Earnings

This table compares Xponential Fitness and Target Hospitality”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$288.47 million	0.77	-$33.79 million	($1.47)	-3.05
Target Hospitality	$347.37 million	3.92	-$37.12 million	($0.38)	-35.97

Xponential Fitness has higher earnings, but lower revenue 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.

Summary

Target Hospitality beats Xponential Fitness on 9 of the 15 factors compared between the two stocks.

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.

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.