Planet Fitness (NYSE:PLNT) and Town Sports International (OTCMKTS:CLUBQ) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
14.1% of Town Sports International shares are owned by institutional investors. 9.3% of Planet Fitness 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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Planet Fitness has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Town Sports International has a beta of 2.8, meaning that its stock price is 180% more volatile than the S&P 500.
Valuation and Earnings
This table compares Planet Fitness and Town Sports International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Planet Fitness||$688.80 million||7.81||$117.69 million||$1.59||39.13|
|Town Sports International||$466.76 million||0.00||-$18.56 million||N/A||N/A|
Planet Fitness has higher revenue and earnings than Town Sports International.
This table compares Planet Fitness and Town Sports International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Town Sports International||-34.10%||N/A||-5.58%|
This is a breakdown of current ratings and price targets for Planet Fitness and Town Sports International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Town Sports International||0||0||0||0||N/A|
Planet Fitness presently has a consensus price target of $73.31, suggesting a potential upside of 17.83%. Given Planet Fitness’ higher probable upside, analysts plainly believe Planet Fitness is more favorable than Town Sports International.
Planet Fitness beats Town Sports International on 7 of the 11 factors compared between the two stocks.
Planet Fitness Company Profile
Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness name. It operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, the Dominican Republic, and Panama. The Corporate-Owned Stores segment operates corporate-owned stores in the United States and Canada. The Equipment segment engages in the sale of fitness equipment to franchisee-owned stores in the United States. As of June 30, 2018, the company had 1,608 stores in 50 states, the District of Columbia, Puerto Rico, Canada, the Dominican Republic, Panama, and Mexico. Planet Fitness, Inc. has a strategic collaboration with Kohl's Corporation to open Planet Fitness stores. The company was founded in 1992 and is headquartered in Hampton, New Hampshire.
Town Sports International Company Profile
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.
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