Financial Analysis: Krispy Kreme (NASDAQ:DNUT) versus Planet Fitness (NYSE:PLNT)

Planet Fitness (NYSE:PLNT) and Krispy Kreme (NASDAQ:DNUT) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Volatility & Risk

Planet Fitness has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Profitability

This table compares Planet Fitness and Krispy Kreme’s 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%
Krispy Kreme	-6.16%	-1.17%	-0.31%

Analyst Ratings

This is a breakdown of current ratings for Planet Fitness and Krispy Kreme, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Planet Fitness	1	9	11	1	2.55
Krispy Kreme	2	1	1	0	1.75

Planet Fitness presently has a consensus price target of $69.55, indicating a potential upside of 30.08%. Krispy Kreme has a consensus price target of $4.33, indicating a potential upside of 32.72%. Given Krispy Kreme’s higher probable upside, analysts plainly believe Krispy Kreme is more favorable than Planet Fitness.

Institutional & Insider Ownership

95.5% of Planet Fitness shares are owned by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are owned by institutional investors. 0.9% of Planet Fitness shares are owned by company insiders. Comparatively, 1.6% of Krispy Kreme shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Planet Fitness and Krispy Kreme”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Planet Fitness	$1.41 billion	2.87	$219.10 million	$2.95	18.13
Krispy Kreme	$1.52 billion	0.37	-$515.77 million	($0.56)	-5.83

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

Summary

Planet Fitness beats Krispy Kreme on 10 of the 15 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 Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.