Viking (NYSE:VIK) versus Target Hospitality (NASDAQ:TH) Head to Head Comparison
by Mitch Edgeman · The Markets DailyViking (NYSE:VIK – Get Free Report) and Target Hospitality (NASDAQ:TH – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.
Volatility & Risk
Viking has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
Profitability
This table compares Viking and Target Hospitality’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Viking | 17.65% | 240.75% | 10.23% |
| Target Hospitality | -11.58% | -8.65% | -6.41% |
Earnings & Valuation
This table compares Viking and Target Hospitality”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Viking | $6.50 billion | 5.34 | $1.15 billion | $2.57 | 30.31 |
| Target Hospitality | $320.64 million | 4.48 | -$37.12 million | ($0.38) | -37.74 |
Viking has higher revenue and earnings than Target Hospitality. Target Hospitality is trading at a lower price-to-earnings ratio than Viking, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.8% of Viking shares are held by institutional investors. Comparatively, 32.4% of Target Hospitality shares are held by institutional investors. 68.0% of Target Hospitality shares are held 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.
Analyst Ratings
This is a summary of recent ratings for Viking and Target Hospitality, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Viking | 1 | 4 | 10 | 0 | 2.60 |
| Target Hospitality | 1 | 0 | 2 | 1 | 2.75 |
Viking presently has a consensus price target of $75.21, indicating a potential downside of 3.46%. Target Hospitality has a consensus price target of $13.00, indicating a potential downside of 9.34%. Given Viking’s higher probable upside, research analysts clearly believe Viking is more favorable than Target Hospitality.
Summary
Viking beats Target Hospitality on 12 of the 15 factors compared between the two stocks.
About Viking
Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.
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.