Head-To-Head Review: Giftify (NASDAQ:GIFT) & Interactive Strength (NASDAQ:TRNR)

Interactive Strength (NASDAQ:TRNR) and Giftify (NASDAQ:GIFT) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Interactive Strength and Giftify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interactive Strength	-310.22%	-202.21%	-44.30%
Giftify	-15.13%	-63.88%	-39.60%

Earnings and Valuation

This table compares Interactive Strength and Giftify”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Strength	$5.38 million	1.13	-$34.93 million	($7,629.53)	0.00
Giftify	$88.93 million	0.37	-$18.83 million	($0.50)	-2.18

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Interactive Strength and Giftify, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Strength	0	0	0	1	4.00
Giftify	0	0	1	0	3.00

Interactive Strength currently has a consensus target price of $15.00, suggesting a potential upside of 281.68%. Giftify has a consensus target price of $4.00, suggesting a potential upside of 266.97%. Given Interactive Strength’s stronger consensus rating and higher probable upside, research analysts clearly believe Interactive Strength is more favorable than Giftify.

Insider & Institutional Ownership

0.6% of Interactive Strength shares are held by institutional investors. 0.1% of Interactive Strength shares are held by insiders. Comparatively, 20.5% of Giftify shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Interactive Strength has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Giftify has a beta of -1.43, indicating that its stock price is 243% less volatile than the S&P 500.

Summary

Giftify beats Interactive Strength on 8 of the 15 factors compared between the two stocks.

About Interactive Strength

Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. The company offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. It also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. Interactive Strength Inc. was incorporated in 2017 and is headquartered in Austin, Texas.

About Giftify

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.