Bloomin’ Brands (NASDAQ:BLMN) & Planet Fitness (NYSE:PLNT) Head-To-Head Comparison

Bloomin’ Brands (NASDAQ:BLMN) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

95.5% of Planet Fitness shares are owned by institutional investors. 1.2% of Bloomin’ Brands shares are owned by company insiders. Comparatively, 0.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Bloomin’ Brands has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Bloomin’ Brands and Planet Fitness, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bloomin’ Brands	2	8	0	1	2.00
Planet Fitness	1	9	11	1	2.55

Bloomin’ Brands presently has a consensus price target of $9.75, indicating a potential upside of 11.36%. Planet Fitness has a consensus price target of $70.24, indicating a potential upside of 34.97%. Given Planet Fitness’ stronger consensus rating and higher possible upside, analysts clearly believe Planet Fitness is more favorable than Bloomin’ Brands.

Profitability

This table compares Bloomin’ Brands and Planet Fitness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bloomin’ Brands	0.70%	28.95%	3.47%
Planet Fitness	16.88%	-59.46%	8.60%

Earnings & Valuation

This table compares Bloomin’ Brands and Planet Fitness”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bloomin’ Brands	$3.96 billion	0.19	$8.24 million	$0.31	28.24
Planet Fitness	$1.32 billion	2.97	$219.10 million	$2.95	17.64

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

Summary

Planet Fitness beats Bloomin’ Brands on 9 of the 14 factors compared between the two stocks.

About Bloomin’ Brands

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.

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.