adidas (OTCMKTS:ADDYY) versus Peloton Interactive (NASDAQ:PTON) Critical Survey

adidas (OTCMKTS:ADDYY) and Peloton Interactive (NASDAQ:PTON) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Risk & Volatility

adidas has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for adidas and Peloton Interactive, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
adidas 0 8 7 0 2.47
Peloton Interactive 2 4 23 0 2.72

Peloton Interactive has a consensus price target of $140.97, suggesting a potential upside of 30.39%. Given Peloton Interactive’s stronger consensus rating and higher probable upside, analysts clearly believe Peloton Interactive is more favorable than adidas.

Earnings & Valuation

This table compares adidas and Peloton Interactive’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
adidas $22.67 billion 3.01 $493.47 million $1.23 141.34
Peloton Interactive $1.83 billion 17.66 -$71.60 million ($0.32) -337.84

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

Profitability

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

Net Margins Return on Equity Return on Assets
adidas 4.88% 13.77% 4.48%
Peloton Interactive 5.78% 11.53% 5.66%

Institutional & Insider Ownership

0.1% of adidas shares are owned by institutional investors. Comparatively, 68.8% of Peloton Interactive shares are owned by institutional investors. 16.5% of Peloton Interactive shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Peloton Interactive beats adidas on 9 of the 14 factors compared between the two stocks.

About adidas

adidas AG, together with its subsidiaries, designs, develops, distributes, and markets athletic and sports lifestyle products worldwide. The company operates through ten segments: Europe, North America Adidas, North America Reebok, Asia-Pacific, Russia/CIS, Latin America, Emerging Markets, Adidas Golf, Runtastic, and Other Centrally Managed Businesses. It offers footwear; apparel; accessories and gear, such as bags, balls, and fitness equipment; and golf products under the adidas and Reebok brands. The company is also involved in the operation of Runtastic, a digital health and fitness space; and Y-3 label business activities. It sells its products through approximately 2,500 own-retail stores; mono-branded franchise stores; and wholesale distribution, as well as its e-commerce channel. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.

About Peloton Interactive

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. As of December 09, 2020, it had approximately 3.6 million members. 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.

Receive News & Ratings for adidas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for adidas and related companies with MarketBeat.com's FREE daily email newsletter.