Comparing Planet Fitness (NYSE:PLNT) & Giftify (NASDAQ:GIFT)

Giftify (NASDAQ:GIFT) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Earnings & Valuation

This table compares Giftify and Planet Fitness”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Giftify	$88.93 million	0.37	-$18.83 million	($0.42)	-2.55
Planet Fitness	$1.18 billion	7.69	$172.04 million	$2.45	44.51

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

Risk and Volatility

Giftify has a beta of -2.03, meaning that its share price is 303% less volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Insider & Institutional Ownership

95.5% of Planet Fitness shares are owned by institutional investors. 23.8% of Giftify shares are owned by insiders. Comparatively, 0.8% of Planet Fitness shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Giftify	-14.02%	-56.95%	-36.32%
Planet Fitness	15.97%	-126.58%	8.08%

Analyst Recommendations

This is a breakdown of current ratings for Giftify and Planet Fitness, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Giftify	1	0	1	0	2.00
Planet Fitness	0	3	12	1	2.88

Giftify currently has a consensus target price of $4.00, indicating a potential upside of 273.83%. Planet Fitness has a consensus target price of $117.23, indicating a potential upside of 7.50%. Given Giftify’s higher possible upside, equities analysts plainly believe Giftify is more favorable than Planet Fitness.

Summary

Planet Fitness beats Giftify on 12 of the 15 factors compared between the two stocks.

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.

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.