Comparing Peloton Interactive (PTON) and Its Peers

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

Risk and Volatility

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

Earnings & Valuation

This table compares Peloton Interactive and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Peloton Interactive	$2.45 billion	$63.20 million	21.25
Peloton Interactive Competitors	$2.93 billion	$72.16 million	575.37

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

Institutional & Insider Ownership

77.0% of Peloton Interactive shares are held by institutional investors. Comparatively, 45.4% of shares of all “Leisure Products” companies are held by institutional investors. 1.2% of Peloton Interactive shares are held by insiders. Comparatively, 14.8% of shares of all “Leisure Products” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Peloton Interactive and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peloton Interactive	1	6	5	1	2.46
Peloton Interactive Competitors	565	2393	3815	190	2.52

Peloton Interactive presently has a consensus target price of $7.60, indicating a potential upside of 27.73%. As a group, “Leisure Products” companies have a potential upside of 22.22%. Given Peloton Interactive’s higher probable upside, equities analysts plainly believe Peloton Interactive is more favorable than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peloton Interactive	2.58%	-23.92%	3.00%
Peloton Interactive Competitors	-8.21%	-18.19%	-3.85%

Summary

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

About Peloton Interactive

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. 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.