Critical Review: Peloton Interactive (PTON) versus Its Competitors

Peloton Interactive (NASDAQ:PTON) is one of 95 public companies in the “Leisure Products” industry, but how does it weigh in compared to its competitors? We will compare Peloton Interactive to related businesses based on the strength of its dividends, analyst recommendations, valuation, earnings, institutional ownership, profitability and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for Peloton Interactive and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peloton Interactive	1	7	5	0	2.31
Peloton Interactive Competitors	564	2387	3812	188	2.52

Peloton Interactive presently has a consensus price target of $7.60, suggesting a potential upside of 34.28%. As a group, “Leisure Products” companies have a potential upside of 25.10%. Given Peloton Interactive’s higher probable upside, equities analysts clearly believe Peloton Interactive is more favorable than its competitors.

Profitability

This table compares Peloton Interactive and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peloton Interactive	2.58%	-23.92%	3.00%
Peloton Interactive Competitors	-8.21%	-18.19%	-3.85%

Insider and Institutional Ownership

77.0% of Peloton Interactive shares are held by institutional investors. Comparatively, 45.3% of shares of all “Leisure Products” companies are held by institutional investors. 1.3% of Peloton Interactive shares are held by company insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Peloton Interactive and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Peloton Interactive	$2.45 billion	$63.20 million	47.17
Peloton Interactive Competitors	$2.93 billion	$72.16 million	577.49

Peloton Interactive’s competitors have higher revenue and earnings than Peloton Interactive. Peloton Interactive is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Peloton Interactive has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500. Comparatively, Peloton Interactive’s competitors have a beta of 1.20, suggesting that their average share price is 20% more volatile than the S&P 500.

Summary

Peloton Interactive competitors beat Peloton Interactive on 8 of the 13 factors compared.

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.