Noodles & Company (NASDAQ:NDLS – Get Free Report) and Target Hospitality (NASDAQ:TH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Profitability
This table compares Noodles & Company and Target Hospitality’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noodles & Company | -4.71% | N/A | -3.40% |
| Target Hospitality | -10.85% | -9.80% | -6.65% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Noodles & Company and Target Hospitality, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noodles & Company | 1 | 1 | 0 | 0 | 1.50 |
| Target Hospitality | 1 | 0 | 4 | 1 | 2.83 |
Target Hospitality has a consensus price target of $25.20, suggesting a potential upside of 73.91%. Given Target Hospitality’s stronger consensus rating and higher possible upside, analysts plainly believe Target Hospitality is more favorable than Noodles & Company.
Risk & Volatility
Noodles & Company has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.
Valuation and Earnings
This table compares Noodles & Company and Target Hospitality”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noodles & Company | $495.09 million | 0.18 | -$42.57 million | ($4.01) | -3.69 |
| Target Hospitality | $320.64 million | 4.50 | -$37.12 million | ($0.38) | -38.13 |
Target Hospitality has lower revenue, but higher earnings than Noodles & Company. Target Hospitality is trading at a lower price-to-earnings ratio than Noodles & Company, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
65.7% of Noodles & Company shares are held by institutional investors. Comparatively, 32.4% of Target Hospitality shares are held by institutional investors. 2.8% of Noodles & Company shares are held by insiders. Comparatively, 3.8% of Target Hospitality shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Target Hospitality beats Noodles & Company on 9 of the 14 factors compared between the two stocks.
About Noodles & Company
Noodles & Co. engages in the business of development and operation of fast-casual restaurants that serve noodle and pasta dishes, soups, salads, and appetizers. The firm also offers pleasant dining, pick-up, and delivery experiences by quickly preparing fresh food with friendly service. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.
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.
Receive News & Ratings for Noodles & Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Noodles & Company and related companies with MarketBeat.com's FREE daily email newsletter.
