Head to Head Contrast: The Gym Group (OTCMKTS:GYYMF) vs. Clarus (NASDAQ:CLAR)

Clarus (NASDAQ:CLAR) and The Gym Group (OTCMKTS:GYYMF) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Clarus and The Gym Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clarus	1	3	2	0	2.17
The Gym Group	0	0	0	0	0.00

Clarus currently has a consensus price target of $4.06, suggesting a potential upside of 11.91%. Given Clarus’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Clarus is more favorable than The Gym Group.

Earnings and Valuation

This table compares Clarus and The Gym Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clarus	$252.85 million	0.55	-$46.56 million	($0.82)	-4.43
The Gym Group	N/A	N/A	N/A	N/A	N/A

The Gym Group has lower revenue, but higher earnings than Clarus.

Insider and Institutional Ownership

90.3% of Clarus shares are owned by institutional investors. 23.5% of Clarus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clarus	-12.44%	4.35%	3.44%
The Gym Group	N/A	N/A	N/A

Summary

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

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.

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.