Head-To-Head Comparison: Xponential Fitness (NYSE:XPOF) vs. Bowlero (NYSE:BOWL)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bowlero	-6.63%	-31.58%	1.31%
Xponential Fitness	-11.28%	-3.40%	3.29%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bowlero	$1.19 billion	0.83	-$83.58 million	($0.61)	-10.98
Xponential Fitness	$314.88 million	1.02	-$33.79 million	($1.38)	-4.73

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Bowlero and Xponential Fitness, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bowlero	0	0	0	0	0.00
Xponential Fitness	1	8	2	0	2.09

Xponential Fitness has a consensus price target of $8.44, suggesting a potential upside of 29.31%. Given Xponential Fitness’ stronger consensus rating and higher possible upside, analysts plainly believe Xponential Fitness is more favorable than Bowlero.

Insider & Institutional Ownership

68.1% of Bowlero shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 79.9% of Bowlero shares are held by insiders. Comparatively, 24.1% of Xponential Fitness shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Bowlero has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Summary

Xponential Fitness beats Bowlero on 9 of the 14 factors compared between the two stocks.

About Bowlero

Bowlero Corp. operates bowling entertainment centers under the AMF, Bowlmor Lanes, and Bowlero brand names. The company also provides hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. It operates bowling centers in the United States, Mexico, and Canada. The company is headquartered in Mechanicsville, Virginia.

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.