Reviewing Target Hospitality (NASDAQ:TH) and Aureus Greenway (NASDAQ:AGH)

Target Hospitality (NASDAQ:TH) and Aureus Greenway (NASDAQ:AGH) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Insider and Institutional Ownership

32.4% of Target Hospitality shares are held by institutional investors. 68.0% of Target Hospitality shares are held by company insiders. Comparatively, 38.6% of Aureus Greenway shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Target Hospitality and Aureus Greenway, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	1	0	2	1	2.75
Aureus Greenway	1	0	0	0	1.00

Target Hospitality currently has a consensus price target of $13.00, indicating a potential upside of 66.77%. Given Target Hospitality’s stronger consensus rating and higher possible upside, analysts plainly believe Target Hospitality is more favorable than Aureus Greenway.

Earnings & Valuation

This table compares Target Hospitality and Aureus Greenway”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target Hospitality	$386.27 million	2.01	$71.26 million	($0.11)	-70.86
Aureus Greenway	$3.30 million	20.45	-$180,000.00	($0.20)	-22.40

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

Profitability

This table compares Target Hospitality and Aureus Greenway’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%
Aureus Greenway	-95.21%	-19.54%	-16.92%

Summary

Target Hospitality beats Aureus Greenway on 12 of the 14 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 Aureus Greenway

We own and operate two public golf country clubs in Florida that each features a golf-club, consisting of over 289 acres of multi-service recreational property. Our golf country clubs include two golf-courses with over 13,000 yards of combined fairways, clubhouses boasting food and beverage options, aquatic golf ranges, and pro shops to assist any level of golfer. We believe our golf country clubs are a serene combination of approachable golf and nature that are designed to appeal to local residents and tourists alike. The property underlying both of our golf country clubs and the owner of that property are part of and subject to the Association, a not-for-profit corporation homeowners association. Leveraging our two golf country clubs, we plan to (i) continue to develop customer loyalty and capture a greater share of the golf-players who live in,. or visit the greater Orlando region and (ii) increase our revenue from the operation of our golf country clubs. We believe the quality of our golf-courses and the amenities we offer will continue to enhance our ability to attract and retain golf-players across a number of demographic groups and skill levels. Each of our golf country clubs is organized into four principal business sectors: (i) golf recreation, retail golf products, and equipment and facilities rental, (ii) membership dues, (iii) food and beverage services. and (iv) ancillary services and amenities. Each of the golf-courses featured at our golf country clubs present a different set of physical and strategic challenges depending on the layout and where we place the position of a ball-hole and flagstick on a green from time to time during the golf-season. We believe this variation helps to create an enjoyable experience for our customers, no matter how many times they have visited our golf-courses before. We acquired both of our golf country clubs in 2014, and since then, our management team has grown alongside the business. Similarly, our revenue has increased steadily during the last five years due to efforts from our greens superintendent as well as the executive management team. We believe recent capital improvements at both golf country clubs will help the facilities and our golf-courses progressively grow in stature and reputation in order to keep up to date with future infrastructure needs that can meet future demand and structural wherewithal. As a result of these upgrades and our management’s plans for growth, we believe they have gained valuable experience and are well-equipped to take on additional assets and continue to enhance the performance of both golf country clubs since our initial acquisition in 2014. Our principal executive office is located at 2995 Remington Boulevard, Kissimmee, Florida 34744.