Analyzing Peloton Interactive (NASDAQ:PTON) and Marine Products (NYSE:MPX)

Marine Products (NYSE:MPX) and Peloton Interactive (NASDAQ:PTON) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Profitability

This table compares Marine Products and Peloton Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marine Products	6.26%	10.98%	7.98%
Peloton Interactive	-4.24%	N/A	-4.92%

Valuation and Earnings

This table compares Marine Products and Peloton Interactive”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marine Products	$227.67 million	1.29	$17.85 million	$0.37	22.73
Peloton Interactive	$2.46 billion	1.27	-$118.90 million	($0.28)	-26.71

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Marine Products and Peloton Interactive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marine Products	1	0	0	0	1.00
Peloton Interactive	1	7	8	0	2.44

Peloton Interactive has a consensus price target of $9.95, indicating a potential upside of 32.97%. Given Peloton Interactive’s stronger consensus rating and higher probable upside, analysts plainly believe Peloton Interactive is more favorable than Marine Products.

Volatility and Risk

Marine Products has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500.

Insider & Institutional Ownership

13.9% of Marine Products shares are held by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are held by institutional investors. 75.2% of Marine Products shares are held by company insiders. Comparatively, 1.3% of Peloton Interactive shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Marine Products beats Peloton Interactive on 8 of the 14 factors compared between the two stocks.

About Marine Products

Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sport boat and sport fishing boat markets worldwide. The company offers Chaparral sterndrive pleasure boats, including SSi Sport Boats, SSX Sport Boats, and the Surf Series; Chaparral outboard pleasure boats, which include OSX Luxury Sportboats and SSi outboard models; and Robalo outboard sport fishing boats. It also provides center and dual consoles, and Cayman Bay Boats under the Robalo brand name. The company sells its products to a network of domestic and international independent authorized dealers. Marine Products Corporation was founded in 1965 and is based in Atlanta, Georgia. Marine Products Corporation operates as a subsidiary of LOR, Inc.

About Peloton Interactive

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.