Reviewing Life Time Group (NYSE:LTH) & Target Hospitality (NASDAQ:TH)

Life Time Group (NYSE:LTH) and Target Hospitality (NASDAQ:TH) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Life Time Group and Target Hospitality”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life Time Group	$2.62 billion	2.27	$156.24 million	$1.29	20.88
Target Hospitality	$386.27 million	2.00	$71.26 million	($0.11)	-70.45

Life Time Group has higher revenue and earnings than Target Hospitality. Target Hospitality is trading at a lower price-to-earnings ratio than Life Time Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Life Time Group has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares Life Time Group and Target Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life Time Group	9.91%	9.75%	3.65%
Target Hospitality	-3.08%	-1.78%	-1.24%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Life Time Group and Target Hospitality, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life Time Group	0	5	10	1	2.75
Target Hospitality	1	0	2	1	2.75

Life Time Group presently has a consensus price target of $37.00, indicating a potential upside of 37.37%. Target Hospitality has a consensus price target of $13.00, indicating a potential upside of 67.74%. Given Target Hospitality’s higher possible upside, analysts clearly believe Target Hospitality is more favorable than Life Time Group.

Insider & Institutional Ownership

79.4% of Life Time Group shares are owned by institutional investors. Comparatively, 32.4% of Target Hospitality shares are owned by institutional investors. 8.7% of Life Time Group shares are owned by insiders. Comparatively, 68.0% of Target Hospitality shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Life Time Group beats Target Hospitality on 11 of the 13 factors compared between the two stocks.

About Life Time Group

Life Time Group Holdings, Inc. provides health, fitness, and wellness experiences to a community of individual members in the United States and Canada. It primarily engages in designing, building, and operating of sports and athletic, professional fitness, family recreation, and spa centers in a resort-like environment, principally in suburban and urban locations of metropolitan areas. The company also offers fitness floors with equipment, locker rooms, group fitness studios, indoor and outdoor pools, bistros, indoor and outdoor tennis courts, pickleball courts, basketball courts, LifeSpa, LifeCafe, and childcare and Kids Academy learning spaces. In addition, its Life Time Digital provides live streaming fitness classes, remote goal-based personal training, nutrition and weight loss support, curated award-winning health, and fitness and wellness content. The company is also involved in media activities, conducting athletic events, and provision of related services. It operates various centers, including ground leases. The company was formerly known as LTF Holdings, Inc. and changed its name to Life Time Group Holdings, Inc. in June 21, 2021. Life Time Group Holdings, Inc. was founded in 1992 and is headquartered in Chanhassen, Minnesota.

About Target Hospitality

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.