Reviewing Marcus (NYSE:MCS) & Xponential Fitness (NYSE:XPOF)
by Sarita Garza · The Markets DailyXponential Fitness (NYSE:XPOF – Get Free Report) and Marcus (NYSE:MCS – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Profitability
This table compares Xponential Fitness and Marcus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xponential Fitness | -11.28% | -3.40% | 3.29% |
| Marcus | 1.85% | 0.79% | 0.35% |
Risk and Volatility
Xponential Fitness has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Marcus has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Insider and Institutional Ownership
58.6% of Xponential Fitness shares are owned by institutional investors. Comparatively, 81.6% of Marcus shares are owned by institutional investors. 24.1% of Xponential Fitness shares are owned by insiders. Comparatively, 16.5% of Marcus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Xponential Fitness and Marcus”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xponential Fitness | $314.88 million | 0.94 | -$33.79 million | ($1.38) | -4.37 |
| Marcus | $758.46 million | 0.96 | $12.69 million | $0.43 | 55.27 |
Marcus has higher revenue and earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Marcus, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Xponential Fitness and Marcus, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xponential Fitness | 1 | 8 | 2 | 0 | 2.09 |
| Marcus | 0 | 1 | 4 | 1 | 3.00 |
Xponential Fitness presently has a consensus price target of $8.44, suggesting a potential upside of 39.81%. Marcus has a consensus price target of $24.25, suggesting a potential upside of 2.03%. Given Xponential Fitness’ higher possible upside, analysts plainly believe Xponential Fitness is more favorable than Marcus.
Summary
Marcus beats Xponential Fitness on 11 of the 15 factors compared between the two stocks.
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.
About Marcus
The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.