Target Hospitality (NASDAQ:TH) & United Parks & Resorts (NYSE:PRKS) Critical Contrast

Target Hospitality (NASDAQ:THGet Free Report) and United Parks & Resorts (NYSE:PRKSGet Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

32.4% of Target Hospitality shares are held by institutional investors. 3.8% of Target Hospitality shares are held by insiders. Comparatively, 1.2% of United Parks & Resorts shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Target Hospitality and United Parks & Resorts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Target Hospitality 1 0 2 1 2.75
United Parks & Resorts 2 5 5 0 2.25

Target Hospitality presently has a consensus target price of $16.50, suggesting a potential upside of 7.63%. United Parks & Resorts has a consensus target price of $49.50, suggesting a potential upside of 26.59%. Given United Parks & Resorts’ higher possible upside, analysts clearly believe United Parks & Resorts is more favorable than Target Hospitality.

Volatility & Risk

Target Hospitality has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, United Parks & Resorts has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Target Hospitality and United Parks & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Target Hospitality -11.58% -8.65% -6.41%
United Parks & Resorts 10.13% -41.63% 6.32%

Earnings & Valuation

This table compares Target Hospitality and United Parks & Resorts”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Target Hospitality $320.64 million 4.79 -$37.12 million ($0.38) -40.34
United Parks & Resorts $1.66 billion 1.12 $168.35 million $3.05 12.82

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

Summary

United Parks & Resorts beats Target Hospitality on 8 of the 15 factors compared between the two stocks.

About Target Hospitality

(Get Free Report)

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.

About United Parks & Resorts

(Get Free Report)

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

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