Contrasting The Gym Group (OTCMKTS:GYYMF) and Peloton Interactive (NASDAQ:PTON)

The Gym Group (OTCMKTS:GYYMF) and Peloton Interactive (NASDAQ:PTON) 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, earnings, valuation, dividends, institutional ownership, profitability and risk.

Profitability

This table compares The Gym Group and Peloton Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Gym Group	N/A	N/A	N/A
Peloton Interactive	2.58%	-23.92%	3.00%

Analyst Recommendations

This is a summary of recent ratings and price targets for The Gym Group and Peloton Interactive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Gym Group	0	0	0	0	0.00
Peloton Interactive	1	7	5	0	2.31

Peloton Interactive has a consensus price target of $7.94, suggesting a potential upside of 45.77%. Given Peloton Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe Peloton Interactive is more favorable than The Gym Group.

Valuation & Earnings

This table compares The Gym Group and Peloton Interactive”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Gym Group	N/A	N/A	N/A	N/A	N/A
Peloton Interactive	$2.45 billion	0.98	$63.20 million	$0.12	45.42

Peloton Interactive has higher revenue and earnings than The Gym Group.

Institutional and Insider Ownership

77.0% of Peloton Interactive shares are held by institutional investors. 1.3% of Peloton Interactive shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Peloton Interactive beats The Gym Group on 8 of the 9 factors compared between the two stocks.

About The Gym Group

The Gym Group plc, together with its subsidiaries, operates a network of gym facilities under the Gym Group brand name in the United Kingdom. The company was founded in 2007 and is based in Croydon, the United Kingdom.

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.