Head-To-Head Comparison: Target Hospitality (NASDAQ:TH) versus Planet Fitness (NYSE:PLNT)

Target Hospitality (NASDAQ:TH) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Volatility and Risk

Target Hospitality has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target Hospitality	$386.27 million	2.02	$71.26 million	($0.11)	-71.18
Planet Fitness	$1.32 billion	4.75	$219.10 million	$2.62	30.00

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

Profitability

This table compares Target Hospitality and Planet Fitness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	-3.08%	-1.78%	-1.24%
Planet Fitness	16.55%	-97.97%	8.36%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Target Hospitality and Planet Fitness, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	1	0	1	0	2.00
Planet Fitness	1	4	10	2	2.76

Target Hospitality presently has a consensus price target of $11.00, suggesting a potential upside of 40.49%. Planet Fitness has a consensus price target of $120.58, suggesting a potential upside of 53.41%. Given Planet Fitness’ stronger consensus rating and higher probable upside, analysts plainly believe Planet Fitness is more favorable than Target Hospitality.

Institutional & Insider Ownership

32.4% of Target Hospitality shares are held by institutional investors. Comparatively, 95.5% of Planet Fitness shares are held by institutional investors. 68.0% of Target Hospitality shares are held by company insiders. Comparatively, 0.8% of Planet Fitness shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Planet Fitness beats Target Hospitality on 12 of the 15 factors compared between the two stocks.

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.

About Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.