Analyzing Beachbody (NASDAQ:BODI) & Afya (NASDAQ:AFYA)

Afya (NASDAQ:AFYA) and Beachbody (NASDAQ:BODI) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares Afya and Beachbody”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Afya	$662.01 million	1.97	$134.77 million	$1.53	9.08
Beachbody	$251.73 million	0.30	-$2.86 million	$0.67	15.42

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

Risk & Volatility

Afya has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Beachbody has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Insider and Institutional Ownership

88.0% of Afya shares are owned by institutional investors. Comparatively, 74.5% of Beachbody shares are owned by institutional investors. 0.8% of Afya shares are owned by insiders. Comparatively, 42.4% of Beachbody shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Afya and Beachbody’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Afya	20.20%	17.94%	9.16%
Beachbody	2.21%	33.74%	6.40%

Analyst Recommendations

This is a summary of current recommendations and price targets for Afya and Beachbody, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Afya	0	6	0	0	2.00
Beachbody	0	3	3	0	2.50

Afya currently has a consensus price target of $18.00, indicating a potential upside of 29.50%. Beachbody has a consensus price target of $15.67, indicating a potential upside of 51.66%. Given Beachbody’s stronger consensus rating and higher possible upside, analysts clearly believe Beachbody is more favorable than Afya.

About Afya

Afya Limited, through its subsidiaries, operates as a medical education group in Brazil. The company operates through three segments: Undergrad, Continuing Education, and Digital Services. It offers educational products and services, including medical schools, medical residency preparatory courses, graduate courses, and other programs to lifelong medical learners enrolled across its distribution network, as well as to third-party medical schools. The company also provides digital health services, such as subscription-based mobile app and website portal that focuses on assisting health professionals and students with clinical decision-making through tools, such as medical calculators, charts, and updated content, as well as prescriptions, clinical scores, medical procedures and laboratory exams, and others. It offers health sciences courses, which comprise medicine, dentistry, nursing, radiology, psychology, pharmacy, physical education, physiotherapy, nutrition, and biomedicine; and degree programs and courses in other subjects and disciplines, including undergraduate and post graduate courses in business administration, accounting, law, civil engineering, industrial engineering, and pedagogy. In addition, the company provides medical postgraduate specialization programs; printed and digital content; and an online medical education platform and practical medical training services. The company was founded in 1999 and is headquartered in Nova Lima, Brazil.

About Beachbody

The Beachbody Company, Inc. operates as a subscription health and wellness company that provides fitness, nutrition, and stress-reducing programs in the United States and internationally. The company operates Beachbody on Demand, a digital subscription platform that provides access to a library of live and on-demand fitness and nutrition content; and Beachbody on Demand Interactive (BODi) for live fitness and nutrition programs. It also offers nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recover, and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; supplements under the LADDER brand; connected fitness products; and BODi Bike Studio, a package subscription to BODi with a bike and accessories. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.