Critical Comparison: Interactive Strength (NASDAQ:TRNR) vs. JAKKS Pacific (NASDAQ:JAKK)

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

Institutional & Insider Ownership

0.6% of Interactive Strength shares are owned by institutional investors. Comparatively, 44.4% of JAKKS Pacific shares are owned by institutional investors. 0.1% of Interactive Strength shares are owned by company insiders. Comparatively, 4.2% of JAKKS Pacific shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Interactive Strength has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, JAKKS Pacific has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Profitability

This table compares Interactive Strength and JAKKS Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interactive Strength	-159.24%	-469.40%	-52.97%
JAKKS Pacific	4.17%	8.18%	4.57%

Valuation and Earnings

This table compares Interactive Strength and JAKKS Pacific”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Strength	$11.53 million	0.17	-$23.97 million	($306.87)	-0.00
JAKKS Pacific	$570.67 million	0.73	$9.87 million	$2.13	17.08

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

Analyst Ratings

This is a summary of current recommendations for Interactive Strength and JAKKS Pacific, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Strength	1	0	0	0	1.00
JAKKS Pacific	0	1	2	0	2.67

Interactive Strength currently has a consensus target price of $157.50, suggesting a potential upside of 12,916.53%. JAKKS Pacific has a consensus target price of $57.00, suggesting a potential upside of 56.64%. Given Interactive Strength’s higher possible upside, research analysts plainly believe Interactive Strength is more favorable than JAKKS Pacific.

Summary

JAKKS Pacific beats Interactive Strength on 12 of the 13 factors compared between the two stocks.

About Interactive Strength

Interactive Strength Inc. is a connected fitness and wellness company that develops, manufactures and sells technology-enabled exercise equipment and related digital fitness experiences. The company focuses on combining hardware, software and subscription-based content to support strength training, cardiovascular exercise and overall physical wellness. Interactive Strength operates through fitness brands including FORME and CLMBR. FORME offers connected home strength-training systems and digital workout content, while CLMBR develops connected vertical climbing machines designed to provide full-body cardiovascular and resistance training.

About JAKKS Pacific

JAKKS Pacific, Inc. is a toy and consumer products company that develops, designs, produces and markets toys, games, seasonal products and related merchandise. Its product portfolio includes action figures, dolls, roleplay toys, dress-up and costume products, plush items, outdoor and sports toys, games, and other products for children and families. The company markets products under its own brands, including Maui, Disguise and Moose Mountain, as well as through licensing and strategic partnerships with entertainment and consumer brands.