Bloomin’ Brands (NASDAQ:BLMN) and Planet Fitness (NYSE:PLNT) Financial Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Planet Fitness	16.88%	-59.46%	8.60%
Bloomin’ Brands	0.70%	28.95%	3.47%

Risk & Volatility

Planet Fitness has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Bloomin’ Brands has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Institutional and Insider Ownership

95.5% of Planet Fitness shares are held by institutional investors. 0.9% of Planet Fitness shares are held by insiders. Comparatively, 1.2% of Bloomin’ Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Planet Fitness and Bloomin’ Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Planet Fitness	1	9	11	1	2.55
Bloomin’ Brands	2	8	0	1	2.00

Planet Fitness presently has a consensus target price of $70.24, suggesting a potential upside of 41.95%. Bloomin’ Brands has a consensus target price of $9.75, suggesting a potential upside of 20.82%. Given Planet Fitness’ stronger consensus rating and higher probable upside, equities analysts plainly believe Planet Fitness is more favorable than Bloomin’ Brands.

Earnings and Valuation

This table compares Planet Fitness and Bloomin’ Brands”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Planet Fitness	$1.32 billion	2.82	$219.10 million	$2.95	16.77
Bloomin’ Brands	$3.98 billion	0.17	$8.24 million	$0.31	26.03

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

Summary

Planet Fitness beats Bloomin’ Brands on 9 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 Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.