Financial Survey: Xponential Fitness (NYSE:XPOF) vs. Town Sports International (OTCMKTS:CLUBQ)

Xponential Fitness (NYSE:XPOF) and Town Sports International (OTCMKTS:CLUBQ) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

58.6% of Xponential Fitness shares are owned by institutional investors. 42.3% of Xponential Fitness shares are owned by company insiders. Comparatively, 32.2% of Town Sports International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Xponential Fitness and Town Sports International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$320.35 million	1.27	-$64.95 million	($1.65)	-5.04
Town Sports International	N/A	N/A	N/A	N/A	N/A

Town Sports International has lower revenue, but higher earnings than Xponential Fitness.

Analyst Ratings

This is a summary of current recommendations for Xponential Fitness and Town Sports International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	1	6	2	1	2.30
Town Sports International	0	0	0	0	0.00

Xponential Fitness currently has a consensus target price of $11.69, suggesting a potential upside of 40.63%. Given Xponential Fitness’ stronger consensus rating and higher possible upside, equities analysts plainly believe Xponential Fitness is more favorable than Town Sports International.

Profitability

This table compares Xponential Fitness and Town Sports International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-15.30%	-6.85%	5.49%
Town Sports International	N/A	N/A	N/A

Summary

Xponential Fitness beats Town Sports International on 8 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 Town Sports International

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment. Its clubs also provide amenities, including swimming pools, racquet and basketball courts, and functional training zones, as well as babysitting services; and fee-based program services, which comprise personal and small group training, children's programs, and summer camps for kids. The company sells its memberships through direct sales at the club level, as well as corporate and group sales; and through its Websites. As of December 31, 2019, it owned and operated 186 fitness clubs. The company was founded in 1973 and is based in Jupiter, Florida.