Choice Hotels International (NYSE:CHH – Get Free Report) and Xponential Fitness (NYSE:XPOF – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Insider and Institutional Ownership
65.6% of Choice Hotels International shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 23.9% of Choice Hotels International shares are held by company insiders. Comparatively, 24.1% of Xponential Fitness shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Choice Hotels International and Xponential Fitness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Choice Hotels International | 20.28% | 205.69% | 10.68% |
| Xponential Fitness | -13.64% | -3.40% | -0.64% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Choice Hotels International | 4 | 8 | 2 | 0 | 1.86 |
| Xponential Fitness | 1 | 10 | 1 | 0 | 2.00 |
Choice Hotels International currently has a consensus price target of $112.33, indicating a potential upside of 9.56%. Xponential Fitness has a consensus price target of $6.94, indicating a potential upside of 42.31%. Given Xponential Fitness’ stronger consensus rating and higher probable upside, analysts clearly believe Xponential Fitness is more favorable than Choice Hotels International.
Risk and Volatility
Choice Hotels International has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
Earnings & Valuation
This table compares Choice Hotels International and Xponential Fitness”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Choice Hotels International | $1.62 billion | 2.85 | $369.95 million | $7.08 | 14.48 |
| Xponential Fitness | $314.88 million | 0.76 | -$33.79 million | ($1.47) | -3.32 |
Choice Hotels International has higher revenue and earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Choice Hotels International, indicating that it is currently the more affordable of the two stocks.
Summary
Choice Hotels International beats Xponential Fitness on 10 of the 14 factors compared between the two stocks.
About Choice Hotels International
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.
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.
Receive News & Ratings for Choice Hotels International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Choice Hotels International and related companies with MarketBeat.com's FREE daily email newsletter.
