MEDIROM Healthcare Technologies (NYSE:MRM) and YogaWorks (OTCMKTS:YOGA) Critical Analysis

YogaWorks (OTCMKTS:YOGA) and MEDIROM Healthcare Technologies (NYSE:MRM) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for YogaWorks and MEDIROM Healthcare Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YogaWorks	0	0	0	0	0.00
MEDIROM Healthcare Technologies	0	0	0	1	4.00

Given YogaWorks’ higher probable upside, equities research analysts plainly believe YogaWorks is more favorable than MEDIROM Healthcare Technologies.

Insider & Institutional Ownership

2.5% of YogaWorks shares are held by institutional investors. 72.4% of YogaWorks shares are held by insiders. Comparatively, 40.2% of MEDIROM Healthcare Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

YogaWorks has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, MEDIROM Healthcare Technologies has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Earnings & Valuation

This table compares YogaWorks and MEDIROM Healthcare Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YogaWorks	$59.59 million	0.00	-$35.19 million	N/A	N/A
MEDIROM Healthcare Technologies	$8.30 billion	0.01	$820,000.00	N/A	N/A

MEDIROM Healthcare Technologies has higher revenue and earnings than YogaWorks.

Profitability

This table compares YogaWorks and MEDIROM Healthcare Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YogaWorks	N/A	N/A	N/A
MEDIROM Healthcare Technologies	N/A	N/A	N/A

Summary

MEDIROM Healthcare Technologies beats YogaWorks on 5 of the 8 factors compared between the two stocks.

About YogaWorks

YogaWorks, Inc. engages in the ownership and operation of yoga studios and training centers. The firm provides yoga space, teachers at studios, training program, workshops, retreats, and online lessons including Vinyasa, Gentle Yoga, Ashtanga, hot yoga, prenatal classes, and community classes. It also offers a variety of fitness classes. Yoga Works was founded by Maty Ezraty, Chuck Miller, and Alan Finger in 1987 and is headquartered in Culver City, CA.

About MEDIROM Healthcare Technologies

MEDIROM Healthcare Technologies Inc. provides holistic healthcare services in Japan. It operates in three segments: Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty. The Relaxation Salon segment owns and franchises relaxation salons, which provide finger-pressure style bodywork therapy, stretch therapy, and posture and joint alignment, as well as physical therapy elements; and various individual services, including anti-fatigue therapy, athletic support therapy, slim-down therapy, and reflexology. This segment operates relaxation salons under the Re.Ra.Ku and Ruam Ruam brands. The Digital Preventative Healthcare segment offers government-sponsored Specific Health Guidance program, utilizing Lav, an on-demand health monitoring smartphone application and MOTHER Bracelet for fitness applications; and preventative healthcare services utilizing nutritionists and health nurses. The Luxury Beauty segment manages and operates hair salons under the ZACC brand name. MEDIROM Healthcare Technologies Inc. also operates Re.Ra.Ku College that offers continuing training for franchise owners, home office staff, and salon staff covering topics, such as customer service, salon operations, and relaxation techniques. The company was formerly known as MEDIROM Inc. and changed its name to MEDIROM Healthcare Technologies Inc. in March 2020. MEDIROM Healthcare Technologies Inc. was incorporated in 2000 and is headquartered in Tokyo, Japan.