Contrasting Reading International (NASDAQ:RDI) & Xponential Fitness (NYSE:XPOF)

Xponential Fitness (NYSE:XPOF) and Reading International (NASDAQ:RDI) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Xponential Fitness and Reading International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xponential Fitness	$320.35 million	1.27	-$64.95 million	($1.65)	-5.05
Reading International	$210.53 million	0.12	-$35.30 million	($0.61)	-1.80

Reading International has lower revenue, but higher earnings than Xponential Fitness. Xponential Fitness is trading at a lower price-to-earnings ratio than Reading International, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Xponential Fitness has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Reading International has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500.

Profitability

This table compares Xponential Fitness and Reading International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xponential Fitness	-15.30%	-6.85%	5.49%
Reading International	-6.52%	N/A	-3.09%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Xponential Fitness and Reading International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xponential Fitness	1	6	2	1	2.30
Reading International	1	0	0	0	1.00

Xponential Fitness currently has a consensus target price of $11.69, indicating a potential upside of 40.24%. Given Xponential Fitness’ stronger consensus rating and higher possible upside, equities analysts clearly believe Xponential Fitness is more favorable than Reading International.

Insider and Institutional Ownership

58.6% of Xponential Fitness shares are owned by institutional investors. Comparatively, 44.7% of Reading International shares are owned by institutional investors. 47.8% of Xponential Fitness shares are owned by insiders. Comparatively, 32.4% of Reading International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Xponential Fitness beats Reading International on 10 of the 15 factors compared between the two stocks.

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.

About Reading International

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.