Xponential Fitness (NYSE:XPOF – Get Free Report) and Giftify (NASDAQ:GIFT – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Insider & Institutional Ownership
58.6% of Xponential Fitness shares are owned by institutional investors. 42.3% of Xponential Fitness shares are owned by company insiders. Comparatively, 23.8% of Giftify shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Xponential Fitness has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Giftify has a beta of -2.02, suggesting that its share price is 302% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xponential Fitness | $320.35 million | 1.23 | -$64.95 million | ($1.65) | -4.87 |
| Giftify | $88.93 million | 0.38 | -$18.83 million | ($0.42) | -2.62 |
Giftify has lower revenue, but higher earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Giftify, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Xponential Fitness and Giftify, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xponential Fitness | 1 | 6 | 2 | 1 | 2.30 |
| Giftify | 1 | 0 | 1 | 0 | 2.00 |
Xponential Fitness currently has a consensus price target of $11.69, suggesting a potential upside of 45.55%. Giftify has a consensus price target of $4.00, suggesting a potential upside of 263.64%. Given Giftify’s higher probable upside, analysts clearly believe Giftify is more favorable than Xponential Fitness.
Profitability
This table compares Xponential Fitness and Giftify’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% |
| Giftify | -14.02% | -56.95% | -36.32% |
Summary
Xponential Fitness beats Giftify on 10 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 Giftify
RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.
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