Clarus (NASDAQ:CLAR) versus Interactive Strength (NASDAQ:TRNR) Head to Head Review

Interactive Strength (NASDAQ:TRNR) and Clarus (NASDAQ:CLAR) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

0.6% of Interactive Strength shares are held by institutional investors. Comparatively, 90.3% of Clarus shares are held by institutional investors. 0.1% of Interactive Strength shares are held by insiders. Comparatively, 23.5% of Clarus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Interactive Strength and Clarus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Strength	1	0	0	1	2.50
Clarus	1	3	2	0	2.17

Interactive Strength currently has a consensus target price of $157.50, suggesting a potential upside of 9,004.05%. Clarus has a consensus target price of $4.06, suggesting a potential upside of 6.07%. Given Interactive Strength’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Interactive Strength is more favorable than Clarus.

Risk and Volatility

Interactive Strength has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Clarus has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Interactive Strength and Clarus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Strength	$11.53 million	0.24	-$23.97 million	($306.87)	-0.01
Clarus	$250.44 million	0.59	-$46.56 million	($0.82)	-4.67

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Interactive Strength	-159.24%	-469.40%	-52.97%
Clarus	-12.44%	4.35%	3.44%

Summary

Clarus beats Interactive Strength on 10 of the 14 factors compared between the two stocks.

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.

About Clarus

Clarus Corporation designs, develops, manufactures, and distributes outdoor equipment and lifestyle products in the United States and internationally. The company operates through two segments, Outdoor and Adventure. The Outdoor segment offers apparels, such as shells, insulation, midlayers, pants, and logowear; rock-climbing footwear and equipment, including carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gears; technical backpacks and day packs; trekking poles; headlamps and lanterns; gloves and mittens; and skis, ski poles, ski skins, avalanche airbag systems, avalanche transceivers, shovels, and probes. This segment offers its products for climbing, mountaineering, trail running, backpacking, skiing, and other outdoor recreation activities under the Black Diamond Equipment and PIEPS brands. The Adventure segment offers engineered automotive roof racks, trays, mounting systems, luggage boxes, carriers, recovery boards, and accessories under the Rhino-Rack brand; and overlanding and off-road vehicle recovery and extraction tracks for the overland and the off-road market under the MAXTRAX brand, as well as sells and retails overlanding and off-road vehicle under the TRED brand. It markets and distributes its products through independent specialty stores and specialty chains, sporting goods and outdoor recreation stores, distributors, and original equipment manufacturers; and independent distributors, as well as through its websites. The company was formerly known as Black Diamond, Inc. and changed its name to Clarus Corporation in August 2017. The company was founded in 1957 and is headquartered in Salt Lake City, Utah.