Financial Analysis: Interactive Strength (NASDAQ:TRNR) & Caesars Entertainment (NASDAQ:CZR)

Caesars Entertainment (NASDAQ:CZR) and Interactive Strength (NASDAQ:TRNR) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Profitability

This table compares Caesars Entertainment and Interactive Strength’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesars Entertainment	-2.12%	-5.76%	-0.75%
Interactive Strength	-202.03%	-152.27%	-32.49%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Caesars Entertainment and Interactive Strength, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesars Entertainment	1	7	11	1	2.60
Interactive Strength	1	0	0	2	3.00

Caesars Entertainment presently has a consensus price target of $35.39, indicating a potential upside of 52.64%. Interactive Strength has a consensus price target of $15.00, indicating a potential upside of 580.27%. Given Interactive Strength’s stronger consensus rating and higher possible upside, analysts plainly believe Interactive Strength is more favorable than Caesars Entertainment.

Risk & Volatility

Caesars Entertainment has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500. Comparatively, Interactive Strength has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.

Insider and Institutional Ownership

91.8% of Caesars Entertainment shares are owned by institutional investors. Comparatively, 0.6% of Interactive Strength shares are owned by institutional investors. 1.0% of Caesars Entertainment shares are owned by company insiders. Comparatively, 0.1% of Interactive Strength shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Caesars Entertainment and Interactive Strength”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caesars Entertainment	$11.25 billion	0.42	-$278.00 million	($1.15)	-20.16
Interactive Strength	$5.38 million	0.98	-$34.93 million	($22.64)	-0.10

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

Summary

Caesars Entertainment beats Interactive Strength on 9 of the 15 factors compared between the two stocks.

About Caesars Entertainment

Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.

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.