Head-To-Head Review: YogaWorks (YOGA) & Town Sports International (CLUB)

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

Valuation & Earnings

This table compares YogaWorks and Town Sports International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
YogaWorks $55.09 million 0.75 -$9.50 million N/A N/A
Town Sports International $396.92 million 0.40 $8.04 million ($0.64) -9.38

Town Sports International has higher revenue and earnings than YogaWorks.

Analyst Ratings

This is a breakdown of recent recommendations for YogaWorks and Town Sports International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YogaWorks 0 1 5 0 2.83
Town Sports International 0 0 1 0 3.00

YogaWorks currently has a consensus target price of $5.83, indicating a potential upside of 133.33%. Town Sports International has a consensus target price of $7.50, indicating a potential upside of 25.00%. Given YogaWorks’ higher possible upside, equities research analysts plainly believe YogaWorks is more favorable than Town Sports International.

Insider & Institutional Ownership

2.3% of YogaWorks shares are held by institutional investors. Comparatively, 54.4% of Town Sports International shares are held by institutional investors. 19.0% of Town Sports International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
YogaWorks -27.00% -48.95% -20.91%
Town Sports International -4.29% N/A -5.37%

Summary

Town Sports International beats YogaWorks on 8 of the 11 factors compared between the two stocks.

YogaWorks Company Profile

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.

Town Sports International Company Profile

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.

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