Financial Analysis: XpresSpa Group (NASDAQ:XSPA) & Yelp (NASDAQ:YELP)

XpresSpa Group (NASDAQ:XSPA) and Yelp (NYSE:YELP) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Earnings and Valuation

This table compares XpresSpa Group and Yelp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XpresSpa Group $48.51 million 4.51 -$21.22 million N/A N/A
Yelp $1.01 billion 1.77 $40.88 million $0.52 48.04

Yelp has higher revenue and earnings than XpresSpa Group.

Insider and Institutional Ownership

4.8% of XpresSpa Group shares are owned by institutional investors. Comparatively, 91.7% of Yelp shares are owned by institutional investors. 0.3% of XpresSpa Group shares are owned by company insiders. Comparatively, 9.5% of Yelp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares XpresSpa Group and Yelp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XpresSpa Group -65.60% -1,401.12% -72.24%
Yelp 2.34% 3.24% 2.25%

Risk & Volatility

XpresSpa Group has a beta of 2.91, indicating that its stock price is 191% more volatile than the S&P 500. Comparatively, Yelp has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for XpresSpa Group and Yelp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XpresSpa Group 0 0 0 0 N/A
Yelp 3 12 3 0 2.00

Yelp has a consensus target price of $27.53, suggesting a potential upside of 10.22%. Given Yelp’s higher possible upside, analysts plainly believe Yelp is more favorable than XpresSpa Group.

Summary

Yelp beats XpresSpa Group on 9 of the 11 factors compared between the two stocks.

About XpresSpa Group

XpresSpa Group, Inc. operates as a health and wellness services company in the United States and internationally. It operates through two segments, Wellness and Intellectual Property. The Wellness segment offers airport retailer spa services; massage services for the neck, back, feet, and whole body; nail care, such as pedicures, manicures, and polish changes; travel products, including neck pillows, blankets, and massage tools; and cryotherapy, compression, and personal care services, as well as retail products. This segment offers its wellness and travel products through its Website, xpresspa.com. The Intellectual Property segment engages in the monetization of patents related to content and ad delivery, remote monitoring, and computing technologies. As of March 29, 2018, it operated 57 stores in 23 airports. The company was formerly known as FORM Holdings Corp. and changed its name to XpresSpa Group, Inc. in January 2018. XpresSpa Group, Inc. is headquartered in New York, New York.

About Yelp

Yelp Inc. operates a platform that connects consumers with local businesses in the United States, Canada, and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others. It provides free and paid advertising products to businesses, as well as enables businesses to deliver targeted search advertising to local audiences through its Website and mobile application; and business listing products. The company's Yelp platform enables consumers to order flowers, purchase event tickets, and book spa and salon appointments. In addition, it offers Yelp Deals that allow local business owners to create promotional discounted deals for their products and services; and Gift Certificates products for local business owners to sell full-price gift certificates directly to customers through their business listing pages. Further, the company provides other services comprising Yelp Reservations that provide restaurants, nightlife, and other venues with the ability to offer online reservations directly from their Yelp business listing pages; and Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation. Its other services also include Yelp WiFi Marketing product for businesses to create on-premises WiFi access for customers and advertise products on the WiFi log-in page, as well as collect contact and social media information from customers. The company offers its products directly through its sales force; indirectly through partners; and online through its Website, as well as non-advertising partner arrangements. Yelp Inc. was founded in 2004 and is headquartered in San Francisco, California.

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