Analyzing Academy Sports and Outdoors (NASDAQ:ASO) & Peloton Interactive (NASDAQ:PTON)

Peloton Interactive (NASDAQ:PTON) and Academy Sports and Outdoors (NASDAQ:ASO) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for Peloton Interactive and Academy Sports and Outdoors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peloton Interactive	1	8	8	0	2.41
Academy Sports and Outdoors	0	10	10	0	2.50

Peloton Interactive currently has a consensus price target of $9.86, indicating a potential upside of 55.81%. Academy Sports and Outdoors has a consensus price target of $59.89, indicating a potential upside of 2.18%. Given Peloton Interactive’s higher probable upside, analysts plainly believe Peloton Interactive is more favorable than Academy Sports and Outdoors.

Profitability

This table compares Peloton Interactive and Academy Sports and Outdoors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peloton Interactive	-4.24%	N/A	-4.92%
Academy Sports and Outdoors	6.27%	18.24%	7.18%

Volatility & Risk

Peloton Interactive has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500. Comparatively, Academy Sports and Outdoors has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Institutional and Insider Ownership

77.0% of Peloton Interactive shares are held by institutional investors. 1.3% of Peloton Interactive shares are held by insiders. Comparatively, 3.6% of Academy Sports and Outdoors shares are held 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.

Earnings and Valuation

This table compares Peloton Interactive and Academy Sports and Outdoors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peloton Interactive	$2.49 billion	1.06	-$118.90 million	($0.28)	-22.61
Academy Sports and Outdoors	$5.93 billion	0.66	$418.45 million	$5.47	10.71

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

Summary

Academy Sports and Outdoors beats Peloton Interactive on 10 of the 14 factors compared between the two stocks.

About Peloton Interactive

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

About Academy Sports and Outdoors

Academy Sports and Outdoors, Inc., through its subsidiaries, operates as a sporting goods and outdoor recreational retailer in the United States. The company outdoor division comprises camping products, such as coolers and drinkware, and camping accessories and equipment,; fishing products, including marine equipment and fishing rods, reels, and baits and equipment; and hunting products, which includes firearms, ammunition, archery and archery equipment, camouflage apparel, waders, shooting accessories, gun safes, optics, airguns, and hunting equipment. Its sports and recreation division offers fitness equipment, fitness accessories, and nutrition supplies; team and specialty sports equipment, including baseball, football, basketball, soccer, golf, racket sports, volleyball, backpacks, and sports bags; recreation products, which includes patio furniture, outdoor cooking, trampolines, play sets, watersports, and pet equipment, as well as wheeled goods including bicycles, skateboards, and other ride-on toys; and electronics and watches, as well as front-end products, such as consumables, batteries, etc. The company's apparel division provides outdoor and seasonal apparel, denim, work apparel, graphic t-shirts, and accessories; boys and girls outdoor, and athletic apparel; sporting and fitness apparel; and professional and collegiate team licensed apparel and accessories. Its footwear division offers casual shoes, slippers, seasonal footwear, and socks; work and western boots, shoes, and hunting footwear; boys and girls footwear; athletic footwear, such as running shoes, athletic lifestyle, and training shoes; and team and specialty sports footwear, and slides. The company sells its products under the Academy Sports + Outdoors, Magellan Outdoors, BCG, O'rageous, Game Winner, Outdoor Gourmet, and Freely brand names. Academy Sports and Outdoors, Inc. was founded in 1938 and is headquartered in Katy, Texas.