Critical Review: Xponential Fitness (XPOF) vs. Its Competitors

Xponential Fitness (NYSE:XPOFGet Rating) is one of 28 public companies in the “Miscellaneous amusement & recreation services” industry, but how does it weigh in compared to its rivals? We will compare Xponential Fitness to related companies based on the strength of its dividends, valuation, risk, institutional ownership, analyst recommendations, profitability and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Xponential Fitness -17.11% -24.68% 13.70%
Xponential Fitness Competitors -151.81% -80.17% -26.04%

Insider and Institutional Ownership

60.7% of Xponential Fitness shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Miscellaneous amusement & recreation services” companies are owned by institutional investors. 69.3% of Xponential Fitness shares are owned by insiders. Comparatively, 25.0% of shares of all “Miscellaneous amusement & recreation services” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Xponential Fitness and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xponential Fitness 0 0 9 1 3.10
Xponential Fitness Competitors 184 969 1779 56 2.57

Xponential Fitness presently has a consensus price target of $24.83, indicating a potential upside of 52.45%. As a group, “Miscellaneous amusement & recreation services” companies have a potential upside of 53.69%. Given Xponential Fitness’ rivals higher possible upside, analysts clearly believe Xponential Fitness has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Xponential Fitness and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Xponential Fitness $155.08 million $26.98 million -3.49
Xponential Fitness Competitors $3.74 billion $52.84 million 6.92

Xponential Fitness’ rivals have higher revenue and earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Xponential Fitness beats its rivals on 8 of the 12 factors compared.

About Xponential Fitness (Get Rating)

Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in the United States and internationally. The company offers fitness and wellness services, including pilates, barre, cycling, stretching, rowing, yoga, boxing, dancing, running, and functional training under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands. As of December 31, 2021, it had 1,556 franchisees operating 1,954 open studios on an adjusted basis. The company was founded in 2017 and is headquartered in Irvine, California.

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