Contrasting Interactive Strength (NASDAQ:TRNR) and Reading International (NASDAQ:RDI)

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

Analyst Recommendations

This is a summary of recent recommendations for Reading International and Interactive Strength, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reading International	1	0	0	0	1.00
Interactive Strength	1	0	0	2	3.00

Interactive Strength has a consensus price target of $15.00, suggesting a potential upside of 1,392.54%. Given Interactive Strength’s stronger consensus rating and higher probable upside, analysts plainly believe Interactive Strength is more favorable than Reading International.

Risk and Volatility

Reading International has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Interactive Strength has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reading International	-6.52%	N/A	-3.09%
Interactive Strength	-202.03%	-152.27%	-32.49%

Valuation and Earnings

This table compares Reading International and Interactive Strength”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reading International	$210.53 million	0.12	-$35.30 million	($0.61)	-1.77
Interactive Strength	$5.38 million	0.45	-$34.93 million	($22.64)	-0.04

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

Insider & Institutional Ownership

44.7% of Reading International shares are owned by institutional investors. Comparatively, 0.6% of Interactive Strength shares are owned by institutional investors. 32.4% of Reading International shares are owned by insiders. Comparatively, 0.1% of Interactive Strength shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Reading International beats Interactive Strength on 8 of the 14 factors compared between the two stocks.

About Reading International

Reading International, Inc., together with its subsidiaries, focuses on the ownership, development, and operation of entertainment and real property assets in the United States, Australia, and New Zealand. The company operates in two segments, Cinema Exhibition and Real Estate. The Cinema Exhibition segment operates multiplex cinemas. This segment operates its cinema exhibition businesses under the Reading Cinemas, Consolidated Theatres, Angelika Film Center, State Cinema by Angelika, Angelika Anywhere, Event Cinemas, and Rialto Cinemas brands. The Real Estate segment develops, rents, or licenses retail, commercial, and live theater assets. Reading International, Inc. was incorporated in 1999 and is headquartered in New York, New York.

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.