The Generation Essentials Group (NYSE:TGE) versus Xponential Fitness (NYSE:XPOF) Critical Review

Xponential Fitness (NYSE:XPOF) and The Generation Essentials Group (NYSE:TGE) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

This table compares Xponential Fitness and The Generation Essentials Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-11.28%	-3.40%	3.29%
The Generation Essentials Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Xponential Fitness and The Generation Essentials Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$314.88 million	1.07	-$33.79 million	($1.38)	-4.95
The Generation Essentials Group	N/A	N/A	N/A	N/A	N/A

The Generation Essentials Group has lower revenue, but higher earnings than Xponential Fitness.

Institutional & Insider Ownership

58.6% of Xponential Fitness shares are held by institutional investors. 24.1% of Xponential Fitness shares are held by insiders. Comparatively, 28.6% of The Generation Essentials Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Xponential Fitness and The Generation Essentials Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	2	7	2	0	2.00
The Generation Essentials Group	1	0	0	0	1.00

Xponential Fitness presently has a consensus target price of $8.44, suggesting a potential upside of 23.63%. Given Xponential Fitness’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Xponential Fitness is more favorable than The Generation Essentials Group.

Risk & Volatility

Xponential Fitness has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, The Generation Essentials Group has a beta of -1.26, suggesting that its share price is 226% less volatile than the S&P 500.

Summary

Xponential Fitness beats The Generation Essentials Group on 7 of the 10 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 The Generation Essentials Group

Tallgrass Energy, LP, through its subsidiaries, provides crude oil transportation services to customers in Wyoming, Colorado, Kansas, and the surrounding regions of the United States. The company operates through three segments: Natural Gas Transportation; Crude Oil Transportation; and Gathering, Processing & Terminalling. It also provides natural gas transportation and storage services for customers in the Rocky Mountain, Midwest, and Appalachian regions; natural gas and crude oil gathering and processing services for customers in Wyoming; and natural gas liquids (NGLs) transportation services in Northeast Colorado and Wyoming. In addition, the company offers water business services, including freshwater transportation, and produced water gathering and disposal in Colorado, Texas, Wyoming, and North Dakota; crude oil storage and terminalling services in Colorado, Oklahoma, and Kansas; and marketing services for NGLs and crude oil. The company was formerly known as Tallgrass Energy GP, LP and changed its name to Tallgrass Energy, LP in June 2018. Tallgrass Energy, LP was founded in 2013 and is based in Leawood, Kansas.