Comparing Planet Fitness (PLNT) and Its Competitors

Planet Fitness (NYSE: PLNT) is one of 3 publicly-traded companies in the “Membership sports & recreation clubs” industry, but how does it contrast to its rivals? We will compare Planet Fitness to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, institutional ownership and earnings.

Analyst Ratings

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This is a breakdown of current ratings and recommmendations for Planet Fitness and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Fitness 0 1 8 0 2.89
Planet Fitness Competitors 4 29 107 1 2.74

Planet Fitness presently has a consensus price target of $36.00, indicating a potential downside of 7.02%. Given Planet Fitness’ rivals higher probable upside, analysts plainly believe Planet Fitness has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

98.1% of Planet Fitness shares are owned by institutional investors. Comparatively, 77.4% of shares of all “Membership sports & recreation clubs” companies are owned by institutional investors. 19.9% of Planet Fitness shares are owned by insiders. Comparatively, 17.9% of shares of all “Membership sports & recreation clubs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Planet Fitness and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Fitness 7.71% -52.97% 6.62%
Planet Fitness Competitors 7.71% -52.97% 6.62%

Risk & Volatility

Planet Fitness has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Planet Fitness’ rivals have a beta of -130.98, indicating that their average share price is 13,198% less volatile than the S&P 500.

Earnings & Valuation

This table compares Planet Fitness and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Planet Fitness $429.94 million $33.14 million 46.10
Planet Fitness Competitors $933.99 million $12.17 million -1.95

Planet Fitness’ rivals have higher revenue, but lower earnings than Planet Fitness. Planet Fitness is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Planet Fitness beats its rivals on 7 of the 10 factors compared.

Planet Fitness Company Profile

Planet Fitness, Inc. is a franchisor and operator of fitness centers in the United States. The Company operates through three segments: Franchise; Corporate-owned stores, and Equipment. The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, the Dominican Republic and Canada. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores. As of September 30, 2017, it had approximately 10.5 million members and 1,432 stores in 49 states, the District of Columbia, Puerto Rico, Canada and the Dominican Republic. Of its 1,432 stores, 1,261 were franchised and 58 are corporate-owned, as of September 30, 2017.

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