Comparing Peloton Interactive (NASDAQ:PTON) and Fitell (NASDAQ:FTEL)

Peloton Interactive (NASDAQ:PTON) and Fitell (NASDAQ:FTEL) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Profitability

This table compares Peloton Interactive and Fitell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peloton Interactive	-31.94%	N/A	-31.63%
Fitell	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Peloton Interactive and Fitell, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peloton Interactive	3	12	5	0	2.10
Fitell	0	0	0	0	N/A

Peloton Interactive currently has a consensus target price of $7.50, suggesting a potential upside of 145.74%. Given Peloton Interactive’s higher probable upside, equities research analysts clearly believe Peloton Interactive is more favorable than Fitell.

Insider and Institutional Ownership

77.0% of Peloton Interactive shares are held by institutional investors. Comparatively, 0.1% of Fitell shares are held by institutional investors. 3.3% of Peloton Interactive shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Peloton Interactive and Fitell’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peloton Interactive	$2.80 billion	0.40	-$1.26 billion	($2.45)	-1.24
Fitell	$4.80 million	20.76	-$1.59 million	N/A	N/A

Fitell has lower revenue, but higher earnings than Peloton Interactive.

Summary

Peloton Interactive beats Fitell on 5 of the 9 factors compared between the two stocks.

About Peloton Interactive

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

About Fitell

Fitell Corporation, together with its subsidiaries, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, and FleetX brand names. It is also involved in the boutique fitness clubs licensing business. The company sells its products through its online website and offline business, such as phone, e-mail, and showroom sales. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation is a subsidiary of SKMA Capital and Investment Ltd.