Reviewing Interactive Strength (NASDAQ:TRNR) & Royal Caribbean Cruises (NYSE:RCL)

Interactive Strength (NASDAQ:TRNR) and Royal Caribbean Cruises (NYSE:RCL) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Profitability

This table compares Interactive Strength and Royal Caribbean Cruises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interactive Strength	-310.22%	-202.21%	-44.30%
Royal Caribbean Cruises	23.33%	44.68%	10.36%

Valuation and Earnings

This table compares Interactive Strength and Royal Caribbean Cruises”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Strength	$6.97 million	0.74	-$34.93 million	($34.83)	-0.07
Royal Caribbean Cruises	$17.44 billion	4.02	$2.88 billion	$14.87	17.28

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

Risk & Volatility

Interactive Strength has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, Royal Caribbean Cruises has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Interactive Strength and Royal Caribbean Cruises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Strength	1	0	0	2	3.00
Royal Caribbean Cruises	0	4	19	1	2.88

Interactive Strength presently has a consensus target price of $15.00, suggesting a potential upside of 502.41%. Royal Caribbean Cruises has a consensus target price of $326.86, suggesting a potential upside of 27.19%. Given Interactive Strength’s stronger consensus rating and higher probable upside, analysts clearly believe Interactive Strength is more favorable than Royal Caribbean Cruises.

Institutional and Insider Ownership

0.6% of Interactive Strength shares are held by institutional investors. Comparatively, 87.5% of Royal Caribbean Cruises shares are held by institutional investors. 0.1% of Interactive Strength shares are held by company insiders. Comparatively, 7.0% of Royal Caribbean Cruises shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Royal Caribbean Cruises beats Interactive Strength on 12 of the 15 factors compared between the two stocks.

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.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 21, 2024, it operated 65 ships. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.