Target Hospitality (TH) & Its Peers Critical Review

Target Hospitality (NASDAQ:TH) is one of 52 publicly-traded companies in the “LEISURE&REC SVS” industry, but how does it contrast to its competitors? We will compare Target Hospitality to related businesses based on the strength of its institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Risk & Volatility

Target Hospitality has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, Target Hospitality’s competitors have a beta of 0.65, suggesting that their average share price is 35% less volatile than the S&P 500.

Profitability

This table compares Target Hospitality and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	12.71%	11.34%	6.94%
Target Hospitality Competitors	-90.29%	-69.36%	-9.37%

Insider & Institutional Ownership

32.4% of Target Hospitality shares are held by institutional investors. Comparatively, 57.2% of shares of all “LEISURE&REC SVS” companies are held by institutional investors. 68.0% of Target Hospitality shares are held by insiders. Comparatively, 21.4% of shares of all “LEISURE&REC SVS” companies 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Target Hospitality and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	0	2	1	1	2.75
Target Hospitality Competitors	531	1567	3006	49	2.50

Target Hospitality currently has a consensus target price of $11.25, indicating a potential upside of 53.37%. As a group, “LEISURE&REC SVS” companies have a potential upside of 10.82%. Given Target Hospitality’s stronger consensus rating and higher probable upside, equities analysts plainly believe Target Hospitality is more favorable than its competitors.

Valuation and Earnings

This table compares Target Hospitality and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Target Hospitality	$386.27 million	$71.26 million	17.06
Target Hospitality Competitors	$3.98 billion	$328.73 million	32.93

Target Hospitality’s competitors have higher revenue and earnings than Target Hospitality. Target Hospitality is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Target Hospitality beats its competitors on 8 of the 13 factors compared.

Target Hospitality Company Profile

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.