Head-To-Head Analysis: Target Hospitality (NASDAQ:TH) and Avolta (OTCMKTS:DUFRY)

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

Volatility and Risk

Avolta has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500.

Profitability

This table compares Avolta and Target Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avolta	N/A	N/A	N/A
Target Hospitality	-3.08%	-1.77%	-1.20%

Earnings and Valuation

This table compares Avolta and Target Hospitality”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avolta	$15.33 billion	0.50	$117.00 million	N/A	N/A
Target Hospitality	$386.27 million	1.66	$71.26 million	$0.10	64.10

Avolta has higher revenue and earnings than Target Hospitality.

Institutional & Insider Ownership

32.4% of Target Hospitality shares are held by institutional investors. 68.0% of Target Hospitality shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Avolta and Target Hospitality, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avolta	0	0	0	1	4.00
Target Hospitality	1	1	2	1	2.60

Target Hospitality has a consensus price target of $13.00, indicating a potential upside of 102.81%. Given Target Hospitality’s higher probable upside, analysts plainly believe Target Hospitality is more favorable than Avolta.

About Avolta

Avolta AG operates as a travel retailer. The company’s retail brands include general travel retail shops under the Dufry, World Duty Free, Nuance, Hellenic Duty Free, Zurich Duty-Free or Stockholm Duty-Free, Autogrill, and HMSHost brands; Dufry shopping stores; brand boutiques; convenience stores primarily under the Hudson brand; and specialized shops and theme stores. It offers perfumes and cosmetics, food and confectionery, wines and spirits, watches and jewelry, fashion and leather, tobacco goods, souvenirs, electronics, soft drinks, packaged food, travel accessories, personal items, sunglasses, destination, and other products, as well as newspapers, magazines, and books. It operates duty-free and duty-paid shops located at airports, border, downtown and hotel shops, railway stations and other, cruise liners and ferries, seaports, and motorways in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific. The company was formerly known as Dufry AG and changed its name to Avolta AG in November 2023. Avolta AG was incorporated in 1865 and is headquartered in Basel, Switzerland.

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.