Town Sports International (OTCMKTS:CLUBQ) and Target Hospitality (NASDAQ:TH) Critical Comparison

Town Sports International (OTCMKTS:CLUBQ) and Target Hospitality (NASDAQ:TH) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Town Sports International	N/A	N/A	N/A
Target Hospitality	-3.08%	-1.78%	-1.24%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Town Sports International and Target Hospitality, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Town Sports International	0	0	0	0	0.00
Target Hospitality	1	0	2	1	2.75

Target Hospitality has a consensus target price of $13.00, indicating a potential upside of 53.30%. Given Target Hospitality’s stronger consensus rating and higher possible upside, analysts plainly believe Target Hospitality is more favorable than Town Sports International.

Insider & Institutional Ownership

32.4% of Target Hospitality shares are held by institutional investors. 32.2% of Town Sports International shares are held by insiders. Comparatively, 68.0% of Target Hospitality shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Town Sports International and Target Hospitality”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Town Sports International	N/A	N/A	N/A	N/A	N/A
Target Hospitality	$386.27 million	2.19	$71.26 million	($0.11)	-77.09

Target Hospitality has higher revenue and earnings than Town Sports International.

Summary

Target Hospitality beats Town Sports International on 7 of the 10 factors compared between the two stocks.

About Town Sports International

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment. Its clubs also provide amenities, including swimming pools, racquet and basketball courts, and functional training zones, as well as babysitting services; and fee-based program services, which comprise personal and small group training, children's programs, and summer camps for kids. The company sells its memberships through direct sales at the club level, as well as corporate and group sales; and through its Websites. As of December 31, 2019, it owned and operated 186 fitness clubs. The company was founded in 1973 and is based in Jupiter, Florida.

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.