Head to Head Analysis: Town Sports International Holdings (CLUB) and YogaWorks (YOGA)

Town Sports International Holdings (NASDAQ: CLUB) and YogaWorks (NASDAQ:YOGA) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Institutional and Insider Ownership

50.5% of Town Sports International Holdings shares are held by institutional investors. Comparatively, 1.2% of YogaWorks shares are held by institutional investors. 19.0% of Town Sports International Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Town Sports International Holdings and YogaWorks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Town Sports International Holdings -4.29% N/A -5.37%
YogaWorks N/A N/A N/A

Earnings and Valuation

This table compares Town Sports International Holdings and YogaWorks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Town Sports International Holdings $396.92 million 0.39 $8.04 million ($0.64) -8.98
YogaWorks $55.09 million 0.86 -$9.50 million N/A N/A

Town Sports International Holdings has higher revenue and earnings than YogaWorks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Town Sports International Holdings and YogaWorks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Town Sports International Holdings 0 0 1 0 3.00
YogaWorks 0 0 5 0 3.00

Town Sports International Holdings currently has a consensus price target of $7.50, indicating a potential upside of 30.43%. YogaWorks has a consensus price target of $6.40, indicating a potential upside of 121.45%. Given YogaWorks’ higher probable upside, analysts plainly believe YogaWorks is more favorable than Town Sports International Holdings.

Summary

YogaWorks beats Town Sports International Holdings on 5 of the 9 factors compared between the two stocks.

About Town Sports International Holdings

Town Sports International Holdings, Inc. is an owner and operator of fitness clubs in the Northeast and Mid-Atlantic regions of the United States fitness. As of December 31, 2016, the Company, through its subsidiaries, operated 150 fitness clubs (clubs). It owned and operated a total of 102 clubs under the New York Sports Clubs (NYSC) brand name within a 120-mile radius of New York City as of December 31, 2016, including 35 locations in Manhattan. It owned and operated 28 clubs in the Boston region under its Boston Sports Clubs (BSC) brand name, 12 clubs (one of which is partly-owned) in the Washington, D.C. region under its Washington Sports Clubs (WSC) brand name and five clubs in the Philadelphia region under its Philadelphia Sports Clubs (PSC) brand name as of December 31, 2016. In addition, as of December 31, 2016, it owned and operated three clubs in Switzerland and partly-owned one club that operated under a different brand name in Washington, D.C.

About YogaWorks

YogaWorks, Inc. is a yoga instruction company. The Company provides yoga instruction in the United States with 50 company-owned studios as well as its Internet-based digital media service, MyYogaWorks.com. Its classes are designed to safely challenge practitioners of all levels, making yoga accessible to a diverse population ranging from beginners and casual practitioners to seasoned yogis and professional athletes. It offers a broad range of yoga disciplines and levels from fast-paced flow to soothing restorative and integrated fitness classes. The Company has brands in six geographically dispersed United States markets: Los Angeles, Orange County (California), New York City, Northern California, Boston and Baltimore/Washington D.C. It offers six months and annual prepaid memberships. It also offers private classes for those who wish to receive one-on-one instruction. As of March 31, 2017, the Company owned and operated 50 yoga studios.

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