Krispy Kreme (NASDAQ:DNUT) and Planet Fitness (NYSE:PLNT) Critical Comparison

Krispy Kreme (NASDAQ:DNUT) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Earnings and Valuation

This table compares Krispy Kreme and Planet Fitness”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krispy Kreme	$1.42 billion	0.50	-$515.77 million	($0.56)	-7.42
Planet Fitness	$1.32 billion	3.44	$219.10 million	$2.95	20.47

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

Risk and Volatility

Krispy Kreme has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-6.16%	-1.17%	-0.31%
Planet Fitness	16.88%	-59.46%	8.60%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Krispy Kreme and Planet Fitness, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	2	1	1	0	1.75
Planet Fitness	1	9	11	1	2.55

Krispy Kreme currently has a consensus price target of $4.33, indicating a potential upside of 4.29%. Planet Fitness has a consensus price target of $70.76, indicating a potential upside of 17.18%. Given Planet Fitness’ stronger consensus rating and higher possible upside, analysts clearly believe Planet Fitness is more favorable than Krispy Kreme.

Institutional and Insider Ownership

81.7% of Krispy Kreme shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 1.6% of Krispy Kreme shares are owned by company insiders. Comparatively, 0.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Planet Fitness beats Krispy Kreme on 11 of the 15 factors compared between the two stocks.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.

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.