Lucky Strike Entertainment (NYSE:LUCK – Get Free Report) and Target Hospitality (NASDAQ:TH – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Risk & Volatility
Lucky Strike Entertainment has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Profitability
This table compares Lucky Strike Entertainment and Target Hospitality’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lucky Strike Entertainment | -7.09% | N/A | -2.74% |
| Target Hospitality | -3.08% | -1.78% | -1.24% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lucky Strike Entertainment | $1.20 billion | 0.96 | -$10.02 million | ($0.65) | -12.91 |
| Target Hospitality | $314.55 million | 2.12 | $71.26 million | ($0.11) | -60.64 |
Target Hospitality has lower revenue, but higher earnings than Lucky Strike Entertainment. Target Hospitality is trading at a lower price-to-earnings ratio than Lucky Strike Entertainment, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
68.1% of Lucky Strike Entertainment shares are owned by institutional investors. Comparatively, 32.4% of Target Hospitality shares are owned by institutional investors. 84.2% of Lucky Strike Entertainment shares are owned by company insiders. Comparatively, 68.0% of Target Hospitality shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Lucky Strike Entertainment and Target Hospitality, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lucky Strike Entertainment | 1 | 4 | 4 | 0 | 2.33 |
| Target Hospitality | 1 | 0 | 1 | 0 | 2.00 |
Lucky Strike Entertainment presently has a consensus target price of $11.64, suggesting a potential upside of 38.77%. Target Hospitality has a consensus target price of $11.00, suggesting a potential upside of 64.92%. Given Target Hospitality’s higher probable upside, analysts clearly believe Target Hospitality is more favorable than Lucky Strike Entertainment.
About Lucky Strike Entertainment
Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.
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.
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