Lucky Strike Entertainment (NYSE:LUCK) and Target Hospitality (NASDAQ:TH) Critical Review

Target Hospitality (NASDAQ:THGet Free Report) and Lucky Strike Entertainment (NYSE:LUCKGet Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Risk and Volatility

Target Hospitality has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Target Hospitality and Lucky Strike Entertainment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Target Hospitality 1 0 1 0 2.00
Lucky Strike Entertainment 1 4 4 0 2.33

Target Hospitality presently has a consensus price target of $11.00, suggesting a potential upside of 65.91%. Lucky Strike Entertainment has a consensus price target of $11.64, suggesting a potential upside of 35.38%. Given Target Hospitality’s higher probable upside, equities research analysts plainly believe Target Hospitality is more favorable than Lucky Strike Entertainment.

Valuation & Earnings

This table compares Target Hospitality and Lucky Strike Entertainment”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Target Hospitality $314.55 million 2.10 $71.26 million ($0.11) -60.27
Lucky Strike Entertainment $1.20 billion 0.99 -$10.02 million ($0.65) -13.23

Target Hospitality has higher earnings, but lower revenue than Lucky Strike Entertainment. Target Hospitality is trading at a lower price-to-earnings ratio than Lucky Strike Entertainment, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

32.4% of Target Hospitality shares are held by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are held by institutional investors. 68.0% of Target Hospitality shares are held by insiders. Comparatively, 84.2% of Lucky Strike Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Target Hospitality and Lucky Strike Entertainment’s 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%
Lucky Strike Entertainment -7.09% N/A -2.74%

About Target Hospitality

(Get Free Report)

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 Lucky Strike Entertainment

(Get Free Report)

Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.

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