Dave & Buster’s Entertainment (NASDAQ:PLAY – Get Free Report) and Xponential Fitness (NYSE:XPOF – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Institutional and Insider Ownership
91.4% of Dave & Buster’s Entertainment shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 1.7% of Dave & Buster’s Entertainment shares are held by insiders. Comparatively, 24.1% of Xponential Fitness 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.
Volatility and Risk
Dave & Buster’s Entertainment has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500.
Profitability
This table compares Dave & Buster’s Entertainment and Xponential Fitness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dave & Buster’s Entertainment | -4.26% | -51.87% | -1.29% |
| Xponential Fitness | -13.64% | -3.40% | -0.66% |
Earnings & Valuation
This table compares Dave & Buster’s Entertainment and Xponential Fitness”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dave & Buster’s Entertainment | $2.08 billion | 0.12 | -$48.70 million | ($2.57) | -2.71 |
| Xponential Fitness | $314.88 million | 0.65 | -$33.79 million | ($1.47) | -2.84 |
Xponential Fitness has lower revenue, but higher earnings than Dave & Buster’s Entertainment. Xponential Fitness is trading at a lower price-to-earnings ratio than Dave & Buster’s Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Dave & Buster’s Entertainment and Xponential Fitness, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dave & Buster’s Entertainment | 2 | 5 | 2 | 0 | 2.00 |
| Xponential Fitness | 1 | 10 | 1 | 0 | 2.00 |
Dave & Buster’s Entertainment currently has a consensus target price of $17.33, suggesting a potential upside of 149.04%. Xponential Fitness has a consensus target price of $6.50, suggesting a potential upside of 55.69%. Given Dave & Buster’s Entertainment’s higher probable upside, equities analysts plainly believe Dave & Buster’s Entertainment is more favorable than Xponential Fitness.
Summary
Dave & Buster’s Entertainment beats Xponential Fitness on 7 of the 13 factors compared between the two stocks.
About Dave & Buster’s Entertainment
Dave & Buster's Entertainment, Inc. owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster's name. As of April 02, 2019, it owned and operated 125 venues in 39 states, Puerto Rico, and Canada. The company was founded in 1982 and is headquartered in Dallas, Texas.
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.
Receive News & Ratings for Dave & Buster's Entertainment Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dave & Buster's Entertainment and related companies with MarketBeat.com's FREE daily email newsletter.
