Head to Head Comparison: Emerald (NYSE:EEX) and Beachbody (NYSE:BODI)

Emerald (NYSE:EEX) and Beachbody (NYSE:BODI) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Emerald and Beachbody, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerald	0	0	2	0	3.00
Beachbody	0	2	1	0	2.33

Emerald presently has a consensus target price of $7.95, indicating a potential upside of 49.72%. Beachbody has a consensus target price of $10.00, indicating a potential upside of 87.44%. Given Beachbody’s higher probable upside, analysts plainly believe Beachbody is more favorable than Emerald.

Valuation & Earnings

This table compares Emerald and Beachbody”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerald	$398.80 million	2.64	$2.20 million	$0.05	106.20
Beachbody	$324.87 million	0.12	-$71.64 million	($8.48)	-0.63

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

Profitability

This table compares Emerald and Beachbody’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerald	1.83%	2.03%	0.70%
Beachbody	-17.92%	-106.08%	-19.86%

Risk & Volatility

Emerald has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Beachbody has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

14.9% of Emerald shares are held by institutional investors. Comparatively, 74.5% of Beachbody shares are held by institutional investors. 4.0% of Emerald shares are held by insiders. Comparatively, 41.8% of Beachbody shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Emerald beats Beachbody on 10 of the 14 factors compared between the two stocks.

About Emerald

Emerald Holding, Inc. operates business-to-business (B2B) trade shows in the United States. The company provides B2B trade show franchises; and B2B print publications and digital media products, which provide industry specific business news and information across various sectors. It also offers B2B e-commerce and digital merchandising solutions to manufacturers and retailers through Elastic Suite and Bulletin platforms. The company serves retail, design, technology, equipment, and safety and security. Emerald Holding, Inc. was incorporated in 2013 and is headquartered in New York, New York.

About Beachbody

The Beachbody Company, Inc. operates as a subscription health and wellness company that provides fitness, nutrition, and stress-reducing programs in the United States and internationally. The company operates Beachbody on Demand, a digital subscription platform that provides access to a library of live and on-demand fitness and nutrition content; and Beachbody on Demand Interactive (BODi) for live fitness and nutrition programs. It also offers nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recover, and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; supplements under the LADDER brand; connected fitness products; and BODi Bike Studio, a package subscription to BODi with a bike and accessories. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.