Planet Fitness (NYSE:PLNT – Get Free Report) and Giftify (NASDAQ:GIFT – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.
Analyst Recommendations
This is a summary of current ratings for Planet Fitness and Giftify, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Planet Fitness | 0 | 3 | 12 | 1 | 2.88 |
| Giftify | 1 | 0 | 1 | 0 | 2.00 |
Planet Fitness presently has a consensus target price of $117.23, suggesting a potential upside of 4.70%. Giftify has a consensus target price of $4.00, suggesting a potential upside of 260.36%. Given Giftify’s higher possible upside, analysts plainly believe Giftify is more favorable than Planet Fitness.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Planet Fitness | $1.18 billion | 7.89 | $172.04 million | $2.45 | 45.70 |
| Giftify | $88.93 million | 0.39 | -$18.83 million | ($0.42) | -2.64 |
Planet Fitness has higher revenue and earnings than Giftify. Giftify is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.5% of Planet Fitness shares are owned by institutional investors. 5.9% of Planet Fitness shares are owned by insiders. Comparatively, 23.8% of Giftify shares are owned 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.
Risk and Volatility
Planet Fitness has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Giftify has a beta of -1.52, meaning that its share price is 252% less volatile than the S&P 500.
Profitability
This table compares Planet Fitness and Giftify’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Planet Fitness | 15.97% | -126.58% | 8.08% |
| Giftify | -14.02% | -56.95% | -36.32% |
Summary
Planet Fitness beats Giftify on 12 of the 15 factors compared between the two stocks.
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.
About Giftify
RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.
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