Town Sports International (OTCMKTS:CLUBQ) versus Interactive Strength (NASDAQ:TRNR) Critical Comparison

Interactive Strength (NASDAQ:TRNR) and Town Sports International (OTCMKTS:CLUBQ) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Valuation & Earnings

This table compares Interactive Strength and Town Sports International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Strength	$5.38 million	0.77	-$34.93 million	($22.64)	-0.08
Town Sports International	N/A	N/A	N/A	N/A	N/A

Town Sports International has lower revenue, but higher earnings than Interactive Strength.

Institutional and Insider Ownership

0.6% of Interactive Strength shares are owned by institutional investors. 0.1% of Interactive Strength shares are owned by company insiders. Comparatively, 32.2% of Town Sports International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Interactive Strength and Town Sports International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Strength	1	0	0	2	3.00
Town Sports International	0	0	0	0	0.00

Interactive Strength presently has a consensus price target of $15.00, indicating a potential upside of 762.07%. Given Interactive Strength’s stronger consensus rating and higher possible upside, equities analysts plainly believe Interactive Strength is more favorable than Town Sports International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Interactive Strength	-202.03%	-152.27%	-32.49%
Town Sports International	N/A	N/A	N/A

Summary

Interactive Strength beats Town Sports International on 5 of the 9 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 Town Sports International

Town Sports International Holdings, Inc., together with its subsidiaries, owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States. The company's clubs offer special purpose rooms for group fitness classes; and other exercise programs, as well as accommodate cardiovascular and strength-training equipment. Its clubs also provide amenities, including swimming pools, racquet and basketball courts, and functional training zones, as well as babysitting services; and fee-based program services, which comprise personal and small group training, children's programs, and summer camps for kids. The company sells its memberships through direct sales at the club level, as well as corporate and group sales; and through its Websites. As of December 31, 2019, it owned and operated 186 fitness clubs. The company was founded in 1973 and is based in Jupiter, Florida.