Planet Fitness (NYSE: PLNT) and YogaWorks (NASDAQ:YOGA) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.
Earnings and Valuation
This table compares Planet Fitness and YogaWorks’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Planet Fitness||$378.24 million||8.09||$21.50 million||$0.67||46.45|
|YogaWorks||$55.09 million||0.74||-$9.50 million||($1.07)||-2.32|
This is a summary of current recommendations and price targets for Planet Fitness and YogaWorks, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Planet Fitness currently has a consensus price target of $29.67, suggesting a potential downside of 4.67%. YogaWorks has a consensus price target of $5.83, suggesting a potential upside of 135.22%. Given YogaWorks’ higher probable upside, analysts clearly believe YogaWorks is more favorable than Planet Fitness.
This table compares Planet Fitness and YogaWorks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
2.3% of YogaWorks shares are held by institutional investors. 19.9% of Planet Fitness shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Planet Fitness beats YogaWorks on 10 of the 12 factors compared between the two stocks.
About Planet Fitness
Planet Fitness, Inc. is a franchisor and operator of fitness centers in the United States. The Company operates through three segments: Franchise; Corporate-owned stores, and Equipment. The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, the Dominican Republic and Canada. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores. As of December 31, 2016, it had approximately 8.9 million members and 1,313 stores in 48 states, the District of Columbia, Puerto Rico, Canada and the Dominican Republic. Of its 1,313 stores, 1,255 were franchised and 58 are corporate-owned, as of December 31, 2016.
YogaWorks, Inc. is a yoga instruction company. The Company provides yoga instruction in the United States with 50 company-owned studios as well as its Internet-based digital media service, MyYogaWorks.com. Its classes are designed to safely challenge practitioners of all levels, making yoga accessible to a diverse population ranging from beginners and casual practitioners to seasoned yogis and professional athletes. It offers a broad range of yoga disciplines and levels from fast-paced flow to soothing restorative and integrated fitness classes. The Company has brands in six geographically dispersed United States markets: Los Angeles, Orange County (California), New York City, Northern California, Boston and Baltimore/Washington D.C. It offers six months and annual prepaid memberships. It also offers private classes for those who wish to receive one-on-one instruction. As of March 31, 2017, the Company owned and operated 50 yoga studios.
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