Planet Fitness (NYSE:PLNT) and Marcus (NYSE:MCS) Critical Analysis

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Planet Fitness	$1.18 billion	6.71	$172.04 million	$2.25	41.87
Marcus	$735.56 million	0.57	-$7.79 million	$0.45	29.78

Planet Fitness has higher revenue and earnings than Marcus. Marcus 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 & Volatility

Planet Fitness has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Marcus has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Planet Fitness	15.11%	-110.18%	7.69%
Marcus	1.91%	4.28%	1.88%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Planet Fitness and Marcus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Planet Fitness	0	2	12	1	2.93
Marcus	0	2	3	1	2.83

Planet Fitness presently has a consensus price target of $111.54, indicating a potential upside of 18.41%. Marcus has a consensus price target of $23.75, indicating a potential upside of 77.23%. Given Marcus’ higher possible upside, analysts plainly believe Marcus is more favorable than Planet Fitness.

Insider & Institutional Ownership

95.5% of Planet Fitness shares are held by institutional investors. Comparatively, 81.6% of Marcus shares are held by institutional investors. 5.9% of Planet Fitness shares are held by insiders. Comparatively, 5.0% of Marcus shares are held by 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 Marcus on 12 of the 14 factors compared between the two stocks.

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.

About Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.