Critical Comparison: Planet Fitness (NYSE:PLNT) and Interactive Strength (NASDAQ:TRNR)

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

Insider & Institutional Ownership

0.6% of Interactive Strength shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 0.1% of Interactive Strength shares are owned by company insiders. Comparatively, 5.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Interactive Strength and Planet Fitness, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Strength	1	0	0	2	3.00
Planet Fitness	0	2	11	2	3.00

Interactive Strength presently has a consensus price target of $2.25, indicating a potential upside of 478.85%. Planet Fitness has a consensus price target of $122.27, indicating a potential upside of 34.84%. Given Interactive Strength’s higher possible upside, research analysts clearly believe Interactive Strength is more favorable than Planet Fitness.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Strength	$5.38 million	0.38	-$34.93 million	($22.64)	-0.02
Planet Fitness	$1.18 billion	6.39	$172.04 million	$2.45	37.01

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

Profitability

This table compares Interactive Strength and Planet Fitness’ 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%
Planet Fitness	15.97%	-126.58%	8.08%

Volatility and Risk

Interactive Strength has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Summary

Planet Fitness beats Interactive Strength on 12 of the 13 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 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.