Peloton Interactive (NASDAQ:PTON – Get Free Report) and Amer Sports (NYSE:AS – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Insider and Institutional Ownership
77.0% of Peloton Interactive shares are owned by institutional investors. Comparatively, 40.3% of Amer Sports shares are owned by institutional investors. 1.3% of Peloton Interactive shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Peloton Interactive has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500. Comparatively, Amer Sports has a beta of 2.86, suggesting that its stock price is 186% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peloton Interactive | $2.49 billion | 1.03 | -$118.90 million | ($0.28) | -21.86 |
| Amer Sports | $5.18 billion | 4.01 | $72.60 million | $0.55 | 68.16 |
Amer Sports has higher revenue and earnings than Peloton Interactive. Peloton Interactive is trading at a lower price-to-earnings ratio than Amer Sports, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Peloton Interactive and Amer Sports’ 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% |
| Amer Sports | 5.10% | 8.51% | 5.12% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Peloton Interactive and Amer Sports, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peloton Interactive | 1 | 8 | 8 | 0 | 2.41 |
| Amer Sports | 0 | 1 | 18 | 3 | 3.09 |
Peloton Interactive currently has a consensus price target of $9.86, suggesting a potential upside of 61.15%. Amer Sports has a consensus price target of $44.73, suggesting a potential upside of 19.32%. Given Peloton Interactive’s higher probable upside, equities research analysts clearly believe Peloton Interactive is more favorable than Amer Sports.
Summary
Amer Sports beats Peloton Interactive on 12 of the 15 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 Amer Sports
Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.
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