Analyzing Xponential Fitness (NYSE:XPOF) & Travel + Leisure (NYSE:TNL)

Travel + Leisure (NYSE:TNL) and Xponential Fitness (NYSE:XPOF) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Travel + Leisure and Xponential Fitness, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travel + Leisure	0	1	10	0	2.91
Xponential Fitness	2	7	2	0	2.00

Travel + Leisure presently has a consensus price target of $85.40, indicating a potential upside of 15.09%. Xponential Fitness has a consensus price target of $8.44, indicating a potential upside of 30.51%. Given Xponential Fitness’ higher probable upside, analysts plainly believe Xponential Fitness is more favorable than Travel + Leisure.

Institutional and Insider Ownership

87.5% of Travel + Leisure shares are owned by institutional investors. Comparatively, 58.5% of Xponential Fitness shares are owned by institutional investors. 4.0% of Travel + Leisure shares are owned by company insiders. Comparatively, 24.1% of Xponential Fitness shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Travel + Leisure and Xponential Fitness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travel + Leisure	5.85%	-48.06%	6.48%
Xponential Fitness	-11.28%	-3.40%	3.29%

Valuation & Earnings

This table compares Travel + Leisure and Xponential Fitness”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travel + Leisure	$4.05 billion	1.14	$230.00 million	$3.56	20.84
Xponential Fitness	$298.71 million	1.06	-$33.79 million	($1.38)	-4.68

Travel + Leisure has higher revenue and earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Travel + Leisure has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Summary

Travel + Leisure beats Xponential Fitness on 11 of the 14 factors compared between the two stocks.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.

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.