Bowlero (NYSE:BOWL – Get Free Report) and Xponential Fitness (NYSE:XPOF – Get Free Report) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Analyst Ratings
This is a summary of current ratings and target prices for Bowlero and Xponential Fitness, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bowlero | 0 | 0 | 0 | 0 | 0.00 |
| Xponential Fitness | 1 | 9 | 1 | 0 | 2.00 |
Xponential Fitness has a consensus price target of $7.50, indicating a potential upside of 50.15%. Given Xponential Fitness’ stronger consensus rating and higher probable upside, analysts plainly believe Xponential Fitness is more favorable than Bowlero.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Bowlero | -6.63% | -31.58% | 1.31% |
| Xponential Fitness | -13.64% | -3.40% | -0.64% |
Institutional and Insider Ownership
68.1% of Bowlero shares are held by institutional investors. Comparatively, 58.6% of Xponential Fitness shares are held by institutional investors. 79.9% of Bowlero shares are held by insiders. Comparatively, 24.1% of Xponential Fitness shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Bowlero and Xponential Fitness”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bowlero | $1.19 billion | 0.83 | -$83.58 million | ($0.61) | -10.95 |
| Xponential Fitness | $314.88 million | 0.78 | -$33.79 million | ($1.38) | -3.62 |
Xponential Fitness has lower revenue, but higher earnings than Bowlero. Bowlero is trading at a lower price-to-earnings ratio than Xponential Fitness, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Bowlero has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Xponential Fitness has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
About Bowlero
Bowlero Corp. operates bowling entertainment centers under the AMF, Bowlmor Lanes, and Bowlero brand names. The company also provides hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. It operates bowling centers in the United States, Mexico, and Canada. The company is headquartered in Mechanicsville, Virginia.
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.
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