Critical Survey: Life Time Group (LTH) & Its Peers

Life Time Group (NYSE:LTH) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its peers? We will compare Life Time Group to similar businesses based on the strength of its profitability, analyst recommendations, valuation, risk, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

79.4% of Life Time Group shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 13.3% of Life Time Group shares are owned by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Life Time Group has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Life Time Group’s peers have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.

Profitability

This table compares Life Time Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life Time Group	12.72%	11.01%	4.36%
Life Time Group Competitors	3.93%	-40.66%	2.07%

Valuation and Earnings

This table compares Life Time Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Life Time Group	$3.00 billion	$373.67 million	25.58
Life Time Group Competitors	$3.43 billion	$250.20 million	-155.62

Life Time Group’s peers have higher revenue, but lower earnings than Life Time Group. Life Time Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and price targets for Life Time Group and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Time Group	0	1	15	0	2.94
Life Time Group Competitors	3807	17285	25595	906	2.50

Life Time Group presently has a consensus target price of $56.14, suggesting a potential upside of 19.26%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.72%. Given Life Time Group’s peers higher possible upside, analysts plainly believe Life Time Group has less favorable growth aspects than its peers.

Summary

Life Time Group beats its peers on 9 of the 13 factors compared.

Life Time Group Company Profile

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.