Head-To-Head Review: Planet Fitness (NYSE:PLNT) & Playtech (OTCMKTS:PYTCF)

Planet Fitness (NYSE:PLNT) and Playtech (OTCMKTS:PYTCF) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Planet Fitness and Playtech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Planet Fitness	1	9	11	0	2.48
Playtech	1	1	2	0	2.25

Planet Fitness currently has a consensus price target of $69.92, indicating a potential upside of 38.31%. Given Planet Fitness’ stronger consensus rating and higher possible upside, equities analysts plainly believe Planet Fitness is more favorable than Playtech.

Profitability

This table compares Planet Fitness and Playtech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Planet Fitness	16.52%	-81.29%	8.66%
Playtech	N/A	N/A	N/A

Institutional & Insider Ownership

95.5% of Planet Fitness shares are owned by institutional investors. Comparatively, 29.1% of Playtech shares are owned by institutional investors. 0.9% of Planet Fitness 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Planet Fitness	$1.32 billion	3.03	$219.10 million	$2.77	18.25
Playtech	N/A	N/A	N/A	$0.51	10.41

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

Summary

Planet Fitness beats Playtech on 10 of the 11 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 Playtech

Playtech plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including live casino, sports, bingo, virtual sports, and poker. It also owns the intellectual property rights and licenses the software; provides digital marketing and advertising, consulting and online technical support, data mining processing, turnkey, live game, and video stream services; and operates betting shops. In addition, the company designs, develops, and sells software. The company was founded in 1999 and is based in Douglas, the Isle of Man.