Head-To-Head Analysis: Xponential Fitness (NYSE:XPOF) versus Marcus (NYSE:MCS)

Xponential Fitness (NYSE:XPOF) and Marcus (NYSE:MCS) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Xponential Fitness and Marcus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	1	8	2	0	2.09
Marcus	0	1	4	1	3.00

Xponential Fitness currently has a consensus target price of $8.44, suggesting a potential upside of 25.93%. Marcus has a consensus target price of $24.25, suggesting a potential upside of 6.72%. Given Xponential Fitness’ higher possible upside, equities analysts plainly believe Xponential Fitness is more favorable than Marcus.

Insider and Institutional Ownership

58.6% of Xponential Fitness shares are owned by institutional investors. Comparatively, 81.6% of Marcus shares are owned by institutional investors. 24.1% of Xponential Fitness shares are owned by insiders. Comparatively, 16.5% of Marcus shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Xponential Fitness has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Marcus has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Earnings & Valuation

This table compares Xponential Fitness and Marcus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$314.88 million	1.05	-$33.79 million	($1.38)	-4.86
Marcus	$758.46 million	0.92	$12.69 million	$0.43	52.85

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

Profitability

This table compares Xponential Fitness and Marcus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-11.28%	-3.40%	3.29%
Marcus	1.85%	0.79%	0.35%

Summary

Marcus beats Xponential Fitness 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 Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.