Financial Analysis: Latham Group (NASDAQ:SWIM) versus Technogym (OTCMKTS:TCCHF)

Technogym (OTCMKTS:TCCHF) and Latham Group (NASDAQ:SWIM) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Valuation and Earnings

This table compares Technogym and Latham Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Technogym	N/A	N/A	N/A	N/A	N/A
Latham Group	$545.91 million	1.53	$11.12 million	$0.05	142.02

Latham Group has higher revenue and earnings than Technogym.

Insider and Institutional Ownership

84.0% of Latham Group shares are held by institutional investors. 3.3% of Latham Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Technogym and Latham Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Technogym	N/A	N/A	N/A
Latham Group	0.92%	1.31%	0.63%

Analyst Recommendations

This is a breakdown of recent recommendations for Technogym and Latham Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Technogym	0	1	1	0	2.50
Latham Group	3	2	2	0	1.86

Latham Group has a consensus price target of $7.83, suggesting a potential upside of 10.31%. Given Latham Group’s higher possible upside, analysts plainly believe Latham Group is more favorable than Technogym.

Summary

Latham Group beats Technogym on 8 of the 9 factors compared between the two stocks.

About Technogym

Technogym S.p.A., a wellness company, designs, manufactures, and sells fitness equipment worldwide. The company offers a range of wellness, physical exercise, and rehabilitation solutions. Its products include treadmills, exercise bikes, elliptical machines and cross trainers, rowers, workout bench, multi gym, dumbbells and kettlebells, weight training set, gym racks and benches, barbells and plates, and strength training machines. The company also offers fitness accessories, including sling trainer, wellness balls, exercise mat, floor mat, foam roller, jump rope, loop bands, power bands, elastic bands, mobility stick and ball, balance pad and dome, cones, speed ladder, medicine ball, slam ball, bike weights, plyobox, training and case kits, and bike pedals; and cable machines, free weights, workout clothes, flexibility and stretching equipment, workout gear, indoor cycling gear, multi gyms, plate loaded strength equipment, weight racks, rowing machine, stair climbers, upper body machines, and gym storage racks, as well as operates its Technogym app. The company markets its products to fitness and wellness clubs; hospitality and residential; and home and consumer segments through field and inside sales, retail, and wholesale channels. The company was founded in 1983 and is headquartered in Cesena, Italy.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.