Weight Watchers International (NASDAQ:WW) and Yogaworks (NASDAQ:YOGA) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Valuation & Earnings

This table compares Weight Watchers International and Yogaworks’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weight Watchers International $1.51 billion 1.08 $223.75 million $3.19 7.68
Yogaworks $59.59 million 0.18 -$35.19 million ($2.14) -0.30

Weight Watchers International has higher revenue and earnings than Yogaworks. Yogaworks is trading at a lower price-to-earnings ratio than Weight Watchers International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Weight Watchers International and Yogaworks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weight Watchers International 1 2 0 0 1.67
Yogaworks 0 2 1 0 2.33

Weight Watchers International presently has a consensus price target of $21.67, indicating a potential downside of 11.56%. Yogaworks has a consensus price target of $4.50, indicating a potential upside of 592.31%. Given Yogaworks’ stronger consensus rating and higher possible upside, analysts clearly believe Yogaworks is more favorable than Weight Watchers International.

Risk and Volatility

Weight Watchers International has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500. Comparatively, Yogaworks has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of Weight Watchers International shares are held by institutional investors. Comparatively, 6.6% of Yogaworks shares are held by institutional investors. 12.0% of Weight Watchers International shares are held by insiders. Comparatively, 72.4% of Yogaworks shares are held 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.

Profitability

This table compares Weight Watchers International and Yogaworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weight Watchers International 11.84% -20.48% 12.29%
Yogaworks -57.80% -121.97% -77.48%

Summary

Weight Watchers International beats Yogaworks on 10 of the 14 factors compared between the two stocks.

Weight Watchers International Company Profile

Weight Watchers International, Inc. provides weight management services worldwide. The company operates in four segments: North America, Continental Europe, United Kingdom, and Other. It provides a range of products and services comprising nutritional, activity, behavioral, and lifestyle tools and approaches. The company offers various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program via its Web-based and mobile app products, including personal coaching products; and allows members to support each other by sharing their experiences with other people on weight management and wellness journeys. Further, it provides various products, including bars, snacks, cookbooks, kitchen tools, and other products. Additionally, the company licenses its trademarks and other intellectual property in food, beverages, and other consumer products and services. It offers products through its e-commerce platform, magazine subscriptions, publishing, and third-party advertising in publications; and through Websites and sales from the By Mail product. The company was founded in 1961 and is headquartered in New York, New York.

Yogaworks Company Profile

YogaWorks, Inc. operates yoga studios under the YogaWorks and Yoga Tree brand names in the United States. It primarily provides yoga classes, workshops, teacher training programs, and yoga-related retail merchandise. The company offers online yoga instruction and programming services through its MyYogaWorks Web platform. As of May 10, 2018, it operated 69 locations. The company was formerly known as YWX Holdings, Inc. and changed its name to YogaWorks, Inc. in April 2017. YogaWorks, Inc. was founded in 1987 and is headquartered in Culver City, California.

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