Analyzing Peloton Interactive (PTON) and Its Rivals

Peloton Interactive (NASDAQ:PTON) is one of 95 publicly-traded companies in the “Leisure Products” industry, but how does it compare to its peers? We will compare Peloton Interactive to related companies based on the strength of its earnings, dividends, analyst recommendations, valuation, profitability, institutional ownership and risk.

Valuation & Earnings

This table compares Peloton Interactive and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Peloton Interactive	$2.45 billion	$63.20 million	20.12
Peloton Interactive Competitors	$3.02 billion	$72.16 million	574.31

Peloton Interactive’s peers have higher revenue and earnings than Peloton Interactive. Peloton Interactive is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Peloton Interactive and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peloton Interactive	5.92%	-81.50%	6.90%
Peloton Interactive Competitors	-8.05%	-19.20%	-3.66%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Peloton Interactive and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peloton Interactive	1	6	4	1	2.42
Peloton Interactive Competitors	569	2400	3817	190	2.52

Peloton Interactive currently has a consensus target price of $7.11, indicating a potential upside of 26.20%. As a group, “Leisure Products” companies have a potential upside of 21.22%. Given Peloton Interactive’s higher probable upside, analysts plainly believe Peloton Interactive is more favorable than its peers.

Institutional and Insider Ownership

77.0% of Peloton Interactive shares are owned by institutional investors. Comparatively, 45.4% of shares of all “Leisure Products” companies are owned by institutional investors. 1.2% of Peloton Interactive shares are owned by company insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies 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.

Volatility & Risk

Peloton Interactive has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, Peloton Interactive’s peers have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Summary

Peloton Interactive peers beat Peloton Interactive on 7 of the 13 factors compared.

Peloton Interactive Company Profile

Peloton Interactive is a connected fitness company that combines exercise equipment, digital fitness content and subscription services. Founded in 2012, the company became known for bringing instructor-led workouts into members’ homes through internet-connected equipment. Its products include stationary bikes, treadmills and rowing machines, along with accessories and the Peloton app. Members can access live and on-demand classes across activities such as cycling, running, strength training, yoga and meditation; some classes are available without Peloton equipment.