Critical Comparison: Marcus (NYSE:MCS) versus Interactive Strength (NASDAQ:TRNR)

Interactive Strength (NASDAQ:TRNR) and Marcus (NYSE:MCS) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares Interactive Strength and Marcus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Strength	$11.53 million	0.09	-$23.97 million	($438.66)	-0.01
Marcus	$758.46 million	0.99	$12.69 million	$0.43	56.79

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

Risk & Volatility

Interactive Strength has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Marcus has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Profitability

This table compares Interactive Strength and Marcus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interactive Strength	-183.89%	-260.54%	-40.30%
Marcus	1.85%	0.79%	0.35%

Analyst Ratings

This is a summary of current recommendations and price targets for Interactive Strength and Marcus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Strength	1	0	0	1	2.50
Marcus	0	1	4	1	3.00

Interactive Strength presently has a consensus target price of $157.50, suggesting a potential upside of 4,931.95%. Marcus has a consensus target price of $24.25, suggesting a potential downside of 0.70%. Given Interactive Strength’s higher possible upside, equities research analysts clearly believe Interactive Strength is more favorable than Marcus.

Insider and Institutional Ownership

0.6% of Interactive Strength shares are owned by institutional investors. Comparatively, 81.6% of Marcus shares are owned by institutional investors. 0.1% of Interactive Strength shares are owned by insiders. Comparatively, 16.5% of Marcus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Marcus beats Interactive Strength on 13 of the 14 factors compared between the two stocks.

About Interactive Strength

Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. The company offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. It also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. Interactive Strength Inc. was incorporated in 2017 and is headquartered in Austin, Texas.

About Marcus

The Marcus Corporation, together with its subsidiaries, owns and operates movie theatres, and hotels and resorts in the United States. It operates a family entertainment center and multiscreen motion picture theatres under the Big Screen Bistro, Big Screen Bistro Express, BistroPlex, and Movie Tavern by Marcus brand names. The company also owns and operates full-service hotels and resorts, as well as manages full-service hotels, resorts, and other properties. In addition, it provides hospitality management services, including check-in, housekeeping, and maintenance for a vacation ownership development; and manages condominium hotels under long-term management contracts. The Marcus Corporation was founded in 1935 and is headquartered in Milwaukee, Wisconsin.