Latham Group (NASDAQ:SWIM – Get Free Report) and Peloton Interactive (NASDAQ:PTON – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
84.0% of Latham Group shares are held by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are held by institutional investors. 3.3% of Latham Group shares are held by insiders. Comparatively, 1.3% of Peloton Interactive shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Latham Group and Peloton Interactive”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Latham Group | $545.91 million | 1.56 | $11.12 million | $0.05 | 145.20 |
| Peloton Interactive | $2.45 billion | 0.95 | $63.20 million | $0.12 | 44.00 |
Peloton Interactive has higher revenue and earnings than Latham Group. Peloton Interactive is trading at a lower price-to-earnings ratio than Latham Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Latham Group has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Latham Group and Peloton Interactive, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Latham Group | 3 | 3 | 1 | 0 | 1.71 |
| Peloton Interactive | 1 | 7 | 4 | 0 | 2.25 |
Latham Group currently has a consensus target price of $7.83, suggesting a potential upside of 7.90%. Peloton Interactive has a consensus target price of $7.56, suggesting a potential upside of 43.10%. Given Peloton Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Peloton Interactive is more favorable than Latham Group.
Profitability
This table compares Latham Group and Peloton Interactive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Latham Group | 0.92% | 1.31% | 0.63% |
| Peloton Interactive | 2.58% | -23.92% | 3.00% |
Summary
Peloton Interactive beats Latham Group on 9 of the 14 factors compared between the two stocks.
About Latham Group
Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.
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.
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