Target Hospitality (NASDAQ:TH – Get Free Report) and Planet Fitness (NYSE:PLNT – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Target Hospitality and Planet Fitness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Target Hospitality | -3.08% | -1.78% | -1.24% |
| Planet Fitness | 16.55% | -97.97% | 8.36% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Target Hospitality and Planet Fitness, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Target Hospitality | 1 | 0 | 1 | 0 | 2.00 |
| Planet Fitness | 1 | 4 | 10 | 2 | 2.76 |
Volatility and Risk
Target Hospitality has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Institutional and Insider Ownership
32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 68.0% of Target Hospitality shares are owned by company insiders. Comparatively, 5.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Target Hospitality and Planet Fitness”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Target Hospitality | $314.55 million | 2.48 | $71.26 million | ($0.11) | -71.18 |
| Planet Fitness | $1.32 billion | 4.94 | $219.10 million | $2.62 | 30.00 |
Planet Fitness has higher revenue and earnings than Target Hospitality. Target Hospitality is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.
Summary
Planet Fitness beats Target Hospitality on 12 of the 15 factors compared between the two stocks.
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.
About Planet Fitness
Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.
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