Critical Survey: Panasonic (OTCMKTS:PCRFY) and Interactive Strength (NASDAQ:TRNR)

Panasonic (OTCMKTS:PCRFY) and Interactive Strength (NASDAQ:TRNR) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Panasonic and Interactive Strength, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Panasonic	0	1	0	0	2.00
Interactive Strength	1	0	0	1	2.50

Interactive Strength has a consensus price target of $157.50, suggesting a potential upside of 7,010.61%. Given Interactive Strength’s stronger consensus rating and higher probable upside, analysts plainly believe Interactive Strength is more favorable than Panasonic.

Earnings & Valuation

This table compares Panasonic and Interactive Strength”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Panasonic	$62.02 billion	0.35	$1.96 billion	$1.54	6.08
Interactive Strength	$20.74 million	0.17	-$23.97 million	($306.87)	-0.01

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

Profitability

This table compares Panasonic and Interactive Strength’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Panasonic	5.96%	12.00%	5.82%
Interactive Strength	-159.24%	-469.40%	-52.97%

Institutional and Insider Ownership

9.4% of Panasonic shares are held by institutional investors. Comparatively, 0.6% of Interactive Strength shares are held by institutional investors. 1.0% of Panasonic shares are held by insiders. Comparatively, 0.1% of Interactive Strength shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Panasonic has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Interactive Strength has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Summary

Panasonic beats Interactive Strength on 11 of the 14 factors compared between the two stocks.

About Panasonic

Panasonic Holdings Corporation, together with its subsidiaries, research, develops, manufactures, sells, and services various electrical and electronic products worldwide. It operates through five segments: Lifestyle, Automotive, Connect, Industry, and Energy. The Lifestyle segment offers refrigerators, microwave ovens, rice cookers, washing machines, lighting fixtures, vacuum cleaners, air-conditioners, air to water heat pump system, air purifiers/sterilizers, and freezing or refrigerating showcases, as well as ventilation and perflation equipment. This segment also provides personal-care products; lamps, wiring devices, solar photovoltaic systems, fuel cells, and compressors; bicycles; and nursing care services. The Automotive segment offers infotainment systems, head-up displays, automotive speakers and switches, advanced driver assistance systems, and related devices, as well as systems and devices for xEVs and interior rearview mirrors. The Connect segment provides aircraft in-flight entertainment systems and communications services; electronic components-mounting machines; welding equipment; projectors; professional AV systems; PCs and tablets; solutions for various industries; installation/operation/ maintenance services; and supply chain management software. The Industry segment offers relays, switches, power supply products, touch panels, motors, sensors, laser markers, capacitors, inductors, resistors, circuit board materials, semiconductor device materials, molding compounds, and LCD panels. The Energy segment provides dry, primary/secondary lithium, nickel-metal hydride, and lithium-ion batteries; and cylindrical lithium-ion batteries for in-vehicle use, as well as storage battery modules and systems. It also offers digital cameras, video and audio equipment, television, telephones, and intercoms. The company was formerly known as Panasonic Corporation. Panasonic Holdings Corporation was founded in 1918 and is headquartered in Kadoma, Japan.

About Interactive Strength

Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. The company offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. It also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. Interactive Strength Inc. was incorporated in 2017 and is headquartered in Austin, Texas.