Comparing Peloton Interactive (NASDAQ:PTON) & Latham Group (NASDAQ:SWIM)

Peloton Interactive (NASDAQ:PTON) and Latham Group (NASDAQ:SWIM) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

77.0% of Peloton Interactive shares are owned by institutional investors. Comparatively, 83.9% of Latham Group shares are owned by institutional investors. 1.3% of Peloton Interactive shares are owned by company insiders. Comparatively, 3.3% of Latham Group shares are owned by company 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.

Profitability

This table compares Peloton Interactive and Latham Group’s 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%
Latham Group	1.55%	4.70%	2.24%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Peloton Interactive and Latham Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peloton Interactive	1	7	5	0	2.31
Latham Group	3	3	1	0	1.71

Peloton Interactive currently has a consensus price target of $7.60, suggesting a potential upside of 30.92%. Latham Group has a consensus price target of $7.83, suggesting a potential downside of 0.21%. Given Peloton Interactive’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Peloton Interactive is more favorable than Latham Group.

Earnings & Valuation

This table compares Peloton Interactive and Latham Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peloton Interactive	$2.45 billion	1.04	$63.20 million	$0.12	48.38
Latham Group	$596.91 million	1.55	$11.12 million	$0.08	98.12

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

Volatility and Risk

Peloton Interactive has a beta of 2.56, suggesting that its stock price is 156% more volatile than the S&P 500. Comparatively, Latham Group has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.

Summary

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

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.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.