Critical Survey: Target Hospitality (TH) versus Its Peers

Target Hospitality (NASDAQ:TH) is one of 52 public companies in the “LEISURE&REC SVS” industry, but how does it contrast to its competitors? We will compare Target Hospitality to related businesses based on the strength of its valuation, risk, earnings, institutional ownership, analyst recommendations, dividends and profitability.

Profitability

This table compares Target Hospitality and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	12.71%	11.34%	6.94%
Target Hospitality Competitors	-115.17%	-63.58%	-9.29%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Target Hospitality and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	0	2	1	1	2.75
Target Hospitality Competitors	539	1580	3026	50	2.50

Target Hospitality presently has a consensus price target of $11.25, suggesting a potential upside of 45.73%. As a group, “LEISURE&REC SVS” companies have a potential upside of 10.75%. Given Target Hospitality’s stronger consensus rating and higher possible upside, analysts plainly believe Target Hospitality is more favorable than its competitors.

Risk and Volatility

Target Hospitality has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Target Hospitality’s competitors have a beta of 0.65, meaning that their average share price is 35% less volatile than the S&P 500.

Earnings & Valuation

This table compares Target Hospitality and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Target Hospitality	$386.27 million	$71.26 million	17.95
Target Hospitality Competitors	$4.00 billion	$328.73 million	32.96

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

Insider & Institutional Ownership

32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 58.3% of shares of all “LEISURE&REC SVS” companies are owned by institutional investors. 68.0% of Target Hospitality shares are owned by insiders. Comparatively, 20.4% of shares of all “LEISURE&REC SVS” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Target Hospitality beats its competitors on 8 of the 13 factors compared.

Target Hospitality Company Profile

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.