Planet Fitness (NYSE:PLNT) versus Playtech (OTCMKTS:PYTCF) Head to Head Comparison

Playtech (OTCMKTS:PYTCF) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Playtech	N/A	N/A	N/A
Planet Fitness	16.52%	-81.29%	8.66%

Valuation and Earnings

This table compares Playtech and Planet Fitness”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Playtech	N/A	N/A	N/A	$0.51	10.41
Planet Fitness	$1.32 billion	3.36	$219.10 million	$2.77	20.19

Planet Fitness has higher revenue and earnings than Playtech. Playtech is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Playtech and Planet Fitness, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Playtech	1	1	2	0	2.25
Planet Fitness	1	9	11	1	2.55

Planet Fitness has a consensus price target of $74.50, suggesting a potential upside of 33.20%. Given Planet Fitness’ stronger consensus rating and higher probable upside, analysts plainly believe Planet Fitness is more favorable than Playtech.

Institutional & Insider Ownership

29.1% of Playtech shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 0.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Planet Fitness beats Playtech on 11 of the 12 factors compared between the two stocks.

About Playtech

Playtech plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including live casino, sports, bingo, virtual sports, and poker. It also owns the intellectual property rights and licenses the software; provides digital marketing and advertising, consulting and online technical support, data mining processing, turnkey, live game, and video stream services; and operates betting shops. In addition, the company designs, develops, and sells software. The company was founded in 1999 and is based in Douglas, the Isle of Man.

About Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.