Town Sports International (OTCMKTS:CLUBQ) & Carnival (NYSE:CCL) Financial Review

Carnival (NYSE:CCL) and Town Sports International (OTCMKTS:CLUBQ) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Carnival and Town Sports International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carnival	0	8	19	1	2.75
Town Sports International	0	0	0	0	0.00

Carnival currently has a consensus target price of $35.00, indicating a potential upside of 9.49%. Given Carnival’s stronger consensus rating and higher probable upside, research analysts plainly believe Carnival is more favorable than Town Sports International.

Institutional and Insider Ownership

67.2% of Carnival shares are owned by institutional investors. 7.6% of Carnival shares are owned by insiders. Comparatively, 32.2% of Town Sports International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Carnival and Town Sports International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carnival	$26.62 billion	1.49	$2.76 billion	$2.00	15.98
Town Sports International	N/A	N/A	N/A	N/A	N/A

Carnival has higher revenue and earnings than Town Sports International.

Profitability

This table compares Carnival and Town Sports International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carnival	10.37%	28.39%	6.09%
Town Sports International	N/A	N/A	N/A

Summary

Carnival beats Town Sports International on 9 of the 10 factors compared between the two stocks.

About Carnival

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe and Asia (EA) Cruise Operations segment consists of AIDA, Costa, Cunard, and P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.

About Town Sports International

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment. Its clubs also provide amenities, including swimming pools, racquet and basketball courts, and functional training zones, as well as babysitting services; and fee-based program services, which comprise personal and small group training, children's programs, and summer camps for kids. The company sells its memberships through direct sales at the club level, as well as corporate and group sales; and through its Websites. As of December 31, 2019, it owned and operated 186 fitness clubs. The company was founded in 1973 and is based in Jupiter, Florida.