Xponential Fitness (NYSE:XPOF) versus Interactive Strength (NASDAQ:TRNR) Head to Head Contrast

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

Volatility and Risk

Xponential Fitness has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Interactive Strength has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Institutional & Insider Ownership

58.5% of Xponential Fitness shares are owned by institutional investors. Comparatively, 0.6% of Interactive Strength shares are owned by institutional investors. 24.1% of Xponential Fitness shares are owned by company insiders. Comparatively, 0.1% of Interactive Strength shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Xponential Fitness and Interactive Strength”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$314.88 million	1.02	-$33.79 million	($1.46)	-4.46
Interactive Strength	$11.53 million	0.18	-$23.97 million	($226.40)	0.00

Interactive Strength has lower revenue, but higher earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Interactive Strength, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-10.90%	-2.19%	1.91%
Interactive Strength	-207.57%	-187.13%	-37.43%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Xponential Fitness and Interactive Strength, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	2	6	1	0	1.89
Interactive Strength	1	0	0	2	3.00

Xponential Fitness currently has a consensus price target of $8.92, suggesting a potential upside of 36.80%. Interactive Strength has a consensus price target of $22.50, suggesting a potential upside of 2,195.92%. Given Interactive Strength’s stronger consensus rating and higher probable upside, analysts plainly believe Interactive Strength is more favorable than Xponential Fitness.

Summary

Xponential Fitness beats Interactive Strength on 10 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 Interactive Strength

Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. The company offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. It also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. Interactive Strength Inc. was incorporated in 2017 and is headquartered in Austin, Texas.