Comparing Xponential Fitness (NYSE:XPOF) and Norwegian Cruise Line (NYSE:NCLH)
by Kim Johansen · The Markets DailyNorwegian Cruise Line (NYSE:NCLH – Get Free Report) and Xponential Fitness (NYSE:XPOF – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Risk and Volatility
Norwegian Cruise Line has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Profitability
This table compares Norwegian Cruise Line and Xponential Fitness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Norwegian Cruise Line | 6.85% | 55.51% | 4.31% |
| Xponential Fitness | -15.30% | -6.85% | 5.49% |
Valuation and Earnings
This table compares Norwegian Cruise Line and Xponential Fitness”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Norwegian Cruise Line | $9.48 billion | 1.11 | $910.26 million | $1.36 | 17.00 |
| Xponential Fitness | $320.35 million | 1.29 | -$64.95 million | ($1.65) | -5.11 |
Norwegian Cruise Line has higher revenue and earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Norwegian Cruise Line, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
69.6% of Norwegian Cruise Line shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 0.4% of Norwegian Cruise Line shares are held by insiders. Comparatively, 47.8% of Xponential Fitness shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Norwegian Cruise Line and Xponential Fitness, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Norwegian Cruise Line | 0 | 10 | 11 | 2 | 2.65 |
| Xponential Fitness | 1 | 6 | 2 | 1 | 2.30 |
Norwegian Cruise Line currently has a consensus target price of $27.37, indicating a potential upside of 18.34%. Xponential Fitness has a consensus target price of $11.69, indicating a potential upside of 38.67%. Given Xponential Fitness’ higher possible upside, analysts plainly believe Xponential Fitness is more favorable than Norwegian Cruise Line.
Summary
Norwegian Cruise Line beats Xponential Fitness on 11 of the 15 factors compared between the two stocks.
About Norwegian Cruise Line
Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean. It distributes its products through retail/travel advisor and onboard cruise sales channels, as well as meetings, incentives, and charters. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida.
About Xponential Fitness
Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in North America. It offers pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training, and yoga services under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands. Xponential Fitness, Inc. was founded in 2017 and is headquartered in Irvine, California.