Xponential Fitness (NYSE:XPOF – Get Free Report) and Reading International (NASDAQ:RDI – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Xponential Fitness and Reading International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xponential Fitness | 1 | 6 | 2 | 1 | 2.30 |
| Reading International | 1 | 0 | 0 | 0 | 1.00 |
Xponential Fitness currently has a consensus target price of $11.69, indicating a potential upside of 42.55%. Given Xponential Fitness’ stronger consensus rating and higher possible upside, research analysts clearly believe Xponential Fitness is more favorable than Reading International.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xponential Fitness | $320.35 million | 1.25 | -$64.95 million | ($1.65) | -4.97 |
| Reading International | $210.53 million | 0.12 | -$35.30 million | ($0.61) | -1.84 |
Reading International has lower revenue, but higher earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Reading International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Xponential Fitness and Reading 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% |
| Reading International | -6.52% | N/A | -3.09% |
Volatility and Risk
Xponential Fitness has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Reading International has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
Insider and Institutional Ownership
58.6% of Xponential Fitness shares are held by institutional investors. Comparatively, 44.7% of Reading International shares are held by institutional investors. 47.8% of Xponential Fitness shares are held by company insiders. Comparatively, 32.4% of Reading International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Xponential Fitness beats Reading International 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 Reading International
Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.
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