Contrasting Basic-Fit (OTCMKTS:BSFFF) and BowFlex (NYSE:BFX)

BowFlex (NYSE:BFX) and Basic-Fit (OTCMKTS:BSFFF) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

26.0% of BowFlex shares are held by institutional investors. 3.9% of BowFlex shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares BowFlex and Basic-Fit’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BowFlex	$226.39 million	0.03	-$105.40 million	($2.10)	-0.09
Basic-Fit	N/A	N/A	N/A	N/A	N/A

Basic-Fit has lower revenue, but higher earnings than BowFlex.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BowFlex and Basic-Fit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BowFlex	0	0	1	0	3.00
Basic-Fit	1	1	1	0	2.00

BowFlex presently has a consensus target price of $2.00, indicating a potential upside of 925.64%. Given BowFlex’s stronger consensus rating and higher possible upside, analysts clearly believe BowFlex is more favorable than Basic-Fit.

Profitability

This table compares BowFlex and Basic-Fit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BowFlex	-32.13%	-162.93%	-48.40%
Basic-Fit	N/A	N/A	N/A

Summary

BowFlex beats Basic-Fit on 5 of the 8 factors compared between the two stocks.

About BowFlex

BowFlex Inc., a fitness solutions company, designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer use in the United States, Canada, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Direct and Retail. It offers cardio products, exercise bikes, treadmills, ellipticals, home gyms, dumbbells, kettlebells, and barbells primarily under the Nautilus, Bowflex, and Schwinn brands, as well as digital fitness platform under the JRNY brand. In addition, it engages in licensing its brands and intellectual properties. The company offers its products directly to consumers through television advertising, social media, websites, and catalogs; and through a network of retail companies consisting of sporting goods stores, online-only retailers, electronics stores, furniture stores, and large-format and warehouse stores, as well as specialty retailers and independent bike dealers. The company was formerly known as Nautilus, Inc. and changed its name to BowFlex Inc. in November 2023. BowFlex Inc. was founded in 1986 and is headquartered in Vancouver, Washington. On March 4, 2024, BowFlex Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.

About Basic-Fit

Basic-Fit N.V., together with its subsidiaries, engages in the operation of fitness clubs. It operates clubs under Basic-Fit brand in the Netherlands, Belgium, Luxembourg, Germany, France, and Spain. The company was founded in 1984 and is based in Hoofddorp, the Netherlands.