Financial Contrast: Vail Resorts (NYSE:MTN) versus Planet Fitness (NYSE:PLNT)

Vail Resorts (NYSE:MTN) and Planet Fitness (NYSE:PLNT) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

94.9% of Vail Resorts shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 1.2% of Vail Resorts shares are owned by insiders. Comparatively, 5.9% of Planet Fitness shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Vail Resorts and Planet Fitness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vail Resorts	9.45%	31.54%	4.93%
Planet Fitness	15.11%	-110.18%	7.69%

Earnings & Valuation

This table compares Vail Resorts and Planet Fitness”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vail Resorts	$2.96 billion	1.80	$280.00 million	$7.41	20.10
Planet Fitness	$1.18 billion	6.68	$172.04 million	$2.25	41.62

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Vail Resorts and Planet Fitness, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vail Resorts	3	6	3	0	2.00
Planet Fitness	0	2	12	1	2.93

Vail Resorts presently has a consensus price target of $174.90, indicating a potential upside of 17.45%. Planet Fitness has a consensus price target of $111.54, indicating a potential upside of 19.10%. Given Planet Fitness’ stronger consensus rating and higher probable upside, analysts plainly believe Planet Fitness is more favorable than Vail Resorts.

Volatility & Risk

Vail Resorts has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Summary

Planet Fitness beats Vail Resorts on 11 of the 15 factors compared between the two stocks.

About Vail Resorts

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.

About Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.