Comparing Target Hospitality (NASDAQ:TH) & Carnival (NYSE:CCL)

Target Hospitality (NASDAQ:TH) and Carnival (NYSE:CCL) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

This table compares Target Hospitality and Carnival’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	-11.58%	-8.65%	-6.41%
Carnival	11.48%	26.92%	6.20%

Earnings and Valuation

This table compares Target Hospitality and Carnival”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target Hospitality	$320.64 million	4.37	-$37.12 million	($0.38)	-36.84
Carnival	$26.62 billion	1.24	$2.76 billion	$2.25	11.85

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

Institutional & Insider Ownership

32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 67.2% of Carnival shares are owned by institutional investors. 3.8% of Target Hospitality shares are owned by insiders. Comparatively, 7.9% of Carnival shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Target Hospitality and Carnival, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	1	0	2	1	2.75
Carnival	1	5	21	0	2.74

Target Hospitality presently has a consensus target price of $16.50, suggesting a potential upside of 17.86%. Carnival has a consensus target price of $33.99, suggesting a potential upside of 27.48%. Given Carnival’s higher probable upside, analysts clearly believe Carnival is more favorable than Target Hospitality.

Volatility & Risk

Target Hospitality has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Carnival has a beta of 2.48, meaning that its share price is 148% more volatile than the S&P 500.

Summary

Carnival 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 Carnival

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.