Head-To-Head Review: Town Sports International (OTCMKTS:CLUBQ) vs. Lucky Strike Entertainment (NYSE:LUCK)

Lucky Strike Entertainment (NYSE:LUCK) and Town Sports International (OTCMKTS:CLUBQ) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Earnings & Valuation

This table compares Lucky Strike Entertainment and Town Sports International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lucky Strike Entertainment	$1.20 billion	0.88	-$10.02 million	($0.65)	-11.69
Town Sports International	N/A	N/A	N/A	N/A	N/A

Town Sports International has lower revenue, but higher earnings than Lucky Strike Entertainment.

Analyst Ratings

This is a summary of current recommendations and price targets for Lucky Strike Entertainment and Town Sports International, 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
Town Sports International	0	0	0	0	0.00

Lucky Strike Entertainment currently has a consensus target price of $11.64, suggesting a potential upside of 53.20%. Given Lucky Strike Entertainment’s stronger consensus rating and higher probable upside, research analysts plainly believe Lucky Strike Entertainment is more favorable than Town Sports International.

Profitability

This table compares Lucky Strike Entertainment and Town Sports International’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%
Town Sports International	N/A	N/A	N/A

Insider & Institutional Ownership

68.1% of Lucky Strike Entertainment shares are owned by institutional investors. 84.2% of Lucky Strike Entertainment shares are owned by insiders. Comparatively, 32.2% of Town Sports International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Lucky Strike Entertainment beats Town Sports International on 6 of the 8 factors compared between the two stocks.

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 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.