Norwegian Cruise Line (NYSE:NCLH) and Xponential Fitness (NYSE:XPOF) Head-To-Head Contrast

Xponential Fitness (NYSE:XPOF) and Norwegian Cruise Line (NYSE:NCLH) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Institutional and Insider Ownership

58.6% of Xponential Fitness shares are held by institutional investors. Comparatively, 69.6% of Norwegian Cruise Line shares are held by institutional investors. 42.3% of Xponential Fitness shares are held by insiders. Comparatively, 0.4% of Norwegian Cruise Line shares are held by 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Xponential Fitness and Norwegian Cruise Line, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	1	6	2	1	2.30
Norwegian Cruise Line	0	10	11	2	2.65

Xponential Fitness currently has a consensus price target of $11.69, indicating a potential upside of 51.79%. Norwegian Cruise Line has a consensus price target of $27.37, indicating a potential upside of 18.60%. Given Xponential Fitness’ higher probable upside, research analysts clearly believe Xponential Fitness is more favorable than Norwegian Cruise Line.

Profitability

This table compares Xponential Fitness and Norwegian Cruise Line’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-15.30%	-6.85%	5.49%
Norwegian Cruise Line	6.85%	55.51%	4.31%

Valuation & Earnings

This table compares Xponential Fitness and Norwegian Cruise Line”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$320.35 million	1.18	-$64.95 million	($1.65)	-4.67
Norwegian Cruise Line	$9.48 billion	1.11	$910.26 million	$1.36	16.97

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

Volatility and Risk

Xponential Fitness has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Norwegian Cruise Line has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500.

Summary

Norwegian Cruise Line beats Xponential Fitness on 11 of the 15 factors compared between the two stocks.

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.

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.