Xponential Fitness (NYSE:XPOF – Get Free Report) and Choice Hotels International (NYSE:CHH – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Risk and Volatility
Xponential Fitness has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
Institutional & Insider Ownership
58.6% of Xponential Fitness shares are held by institutional investors. Comparatively, 65.6% of Choice Hotels International shares are held by institutional investors. 24.1% of Xponential Fitness shares are held by company insiders. Comparatively, 23.9% of Choice Hotels International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xponential Fitness | 1 | 9 | 1 | 0 | 2.00 |
| Choice Hotels International | 4 | 8 | 2 | 0 | 1.86 |
Xponential Fitness currently has a consensus price target of $8.31, suggesting a potential upside of 66.42%. Choice Hotels International has a consensus price target of $111.92, suggesting a potential upside of 4.58%. Given Xponential Fitness’ stronger consensus rating and higher probable upside, analysts clearly believe Xponential Fitness is more favorable than Choice Hotels International.
Profitability
This table compares Xponential Fitness and Choice Hotels International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xponential Fitness | -13.64% | -3.40% | -0.64% |
| Choice Hotels International | 20.28% | 205.69% | 10.68% |
Earnings and Valuation
This table compares Xponential Fitness and Choice Hotels International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xponential Fitness | $314.88 million | 0.78 | -$33.79 million | ($1.38) | -3.62 |
| Choice Hotels International | $1.60 billion | 3.02 | $369.95 million | $7.42 | 14.42 |
Choice Hotels International has higher revenue and earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Choice Hotels International, indicating that it is currently the more affordable of the two stocks.
Summary
Choice Hotels International beats Xponential Fitness on 9 of the 13 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 Choice Hotels International
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.
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