Comparing Target Hospitality (NASDAQ:TH) & AiRWA (NASDAQ:YYAI)

Target Hospitality (NASDAQ:TH) and AiRWA (NASDAQ:YYAI) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Target Hospitality and AiRWA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	3.58%	3.26%	2.13%
AiRWA	23.04%	15.61%	11.55%

Insider and Institutional Ownership

32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 4.0% of AiRWA shares are owned by institutional investors. 68.0% of Target Hospitality shares are owned by insiders. Comparatively, 55.8% of AiRWA shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Target Hospitality has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, AiRWA has a beta of -2.12, meaning that its share price is 312% less volatile than the S&P 500.

Valuation & Earnings

This table compares Target Hospitality and AiRWA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target Hospitality	$386.27 million	1.99	$71.26 million	$0.10	77.20
AiRWA	$12.82 million	0.04	$3.49 million	($0.16)	-10.91

Target Hospitality has higher revenue and earnings than AiRWA. AiRWA is trading at a lower price-to-earnings ratio than Target Hospitality, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Target Hospitality and AiRWA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	1	1	2	1	2.60
AiRWA	0	0	0	0	0.00

Target Hospitality presently has a consensus target price of $13.00, suggesting a potential upside of 68.39%. Given Target Hospitality’s stronger consensus rating and higher probable upside, research analysts clearly believe Target Hospitality is more favorable than AiRWA.

Summary

Target Hospitality beats AiRWA on 12 of the 15 factors compared between the two stocks.

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.

About AiRWA

Connexa Sports Technologies Inc. engages in the sports equipment and technology business in the United States. The company offers Slinger Launcher, a portable padel tennis ball launcher and pickleball launcher; and Slinger Bag Launcher, a ball launcher built into transport wheeled trolley bag. It also provides Gameface, AI technology and performance analytics for sports. Connexa Sports Technologies Inc. is based in Windsor Mill, Maryland.