Norwegian Cruise Line (NYSE:NCLH) and Xponential Fitness (NYSE:XPOF) Financial Contrast

Norwegian Cruise Line (NYSE:NCLH) and Xponential Fitness (NYSE:XPOF) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Valuation & 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	1.05	$910.26 million	$1.36	16.06
Xponential Fitness	$320.35 million	1.15	-$64.95 million	($1.65)	-4.55

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 and Insider Ownership

69.6% of Norwegian Cruise Line shares are owned by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are owned by institutional investors. 0.4% of Norwegian Cruise Line shares are owned by insiders. Comparatively, 47.8% of Xponential Fitness shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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%

Risk & Volatility

Norwegian Cruise Line has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Norwegian Cruise Line and Xponential Fitness, as reported by MarketBeat.com.

	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 price target of $27.37, suggesting a potential upside of 25.28%. Xponential Fitness has a consensus price target of $11.69, suggesting a potential upside of 55.52%. Given Xponential Fitness’ higher probable 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.