Analyzing Xponential Fitness (NYSE:XPOF) and Viking (NYSE:VIK)

Viking (NYSE:VIK) and Xponential Fitness (NYSE:XPOF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

98.8% of Viking shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 42.3% of Xponential Fitness shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Viking has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viking	15.53%	716.92%	9.82%
Xponential Fitness	-15.30%	-6.85%	5.49%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Viking and Xponential Fitness, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viking	1	5	11	0	2.59
Xponential Fitness	1	6	2	1	2.30

Viking presently has a consensus target price of $66.00, indicating a potential downside of 10.02%. Xponential Fitness has a consensus target price of $11.69, indicating a potential upside of 33.50%. Given Xponential Fitness’ higher possible upside, analysts clearly believe Xponential Fitness is more favorable than Viking.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viking	$5.33 billion	6.09	$152.33 million	$2.14	34.28
Xponential Fitness	$320.35 million	1.34	-$64.95 million	($1.65)	-5.31

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

Summary

Viking beats Xponential Fitness on 12 of the 15 factors compared between the two stocks.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.

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.