Critical Contrast: Frontdoor (NASDAQ:FTDR) vs. YogaWorks (OTCMKTS:YOGA)

YogaWorks (OTCMKTS:YOGA) and Frontdoor (NASDAQ:FTDR) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Institutional and Insider Ownership

2.5% of YogaWorks shares are owned by institutional investors. 72.4% of YogaWorks shares are owned by insiders. Comparatively, 0.3% of Frontdoor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares YogaWorks and Frontdoor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YogaWorks	N/A	N/A	N/A
Frontdoor	11.38%	132.94%	19.73%

Volatility and Risk

YogaWorks has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Frontdoor has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Valuation and Earnings

This table compares YogaWorks and Frontdoor’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YogaWorks	$59.59 million	0.00	-$35.19 million	N/A	N/A
Frontdoor	$1.81 billion	2.04	$171.00 million	$2.28	20.85

Frontdoor has higher revenue and earnings than YogaWorks.

Analyst Ratings

This is a breakdown of current ratings and target prices for YogaWorks and Frontdoor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YogaWorks	0	0	0	0	N/A
Frontdoor	1	1	3	0	2.40

Frontdoor has a consensus target price of $47.75, indicating a potential upside of 0.44%.

Summary

Frontdoor beats YogaWorks on 8 of the 10 factors compared between the two stocks.

About YogaWorks

YogaWorks, Inc. engages in the ownership and operation of yoga studios and training centers. The firm provides yoga space, teachers at studios, training program, workshops, retreats, and online lessons including Vinyasa, Gentle Yoga, Ashtanga, hot yoga, prenatal classes, and community classes. It also offers a variety of fitness classes. Yoga Works was founded by Maty Ezraty, Chuck Miller, and Alan Finger in 1987 and is headquartered in Culver City, CA.

About Frontdoor

Frontdoor, Inc. provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems. It also offers on-demand home services and a one-stop app experience for home repair and maintenance; and Streem technology, an app that empowers homeowners by connecting them in real time through video chat with qualified experts to diagnose and solve their problems. The company serves homeowners under the Frontdoor, American Home Shield, HSA, OneGuard, Landmark Home Warranty, Frontdoor logo, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.