Planet Fitness (NYSE:PLNT – Get Free Report) and ONE Group Hospitality (NASDAQ:STKS – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Volatility and Risk
Planet Fitness has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, ONE Group Hospitality has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Planet Fitness and ONE Group Hospitality, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Planet Fitness | 1 | 9 | 11 | 1 | 2.55 |
| ONE Group Hospitality | 1 | 2 | 1 | 0 | 2.00 |
Earnings & Valuation
This table compares Planet Fitness and ONE Group Hospitality”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Planet Fitness | $1.32 billion | 2.74 | $219.10 million | $2.95 | 16.26 |
| ONE Group Hospitality | $805.72 million | 0.06 | -$92.24 million | ($3.80) | -0.39 |
Planet Fitness has higher revenue and earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.5% of Planet Fitness shares are owned by institutional investors. Comparatively, 29.1% of ONE Group Hospitality shares are owned by institutional investors. 0.9% of Planet Fitness shares are owned by company insiders. Comparatively, 25.7% of ONE Group Hospitality shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Planet Fitness and ONE Group Hospitality’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Planet Fitness | 16.88% | -59.46% | 8.60% |
| ONE Group Hospitality | -10.25% | -10.49% | -0.62% |
Summary
Planet Fitness beats ONE Group Hospitality on 11 of the 15 factors compared between the two stocks.
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.
About ONE Group Hospitality
The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.
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