Analyzing Peloton (NASDAQ:PTON) and Emerson Electric (NASDAQ:EMR)

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Peloton (NASDAQ:PTON) and Emerson Electric (NYSE:EMR) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Peloton and Emerson Electric, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peloton 0 3 20 0 2.87
Emerson Electric 1 7 7 0 2.40

Peloton currently has a consensus price target of $33.84, suggesting a potential upside of 7.33%. Emerson Electric has a consensus price target of $73.54, suggesting a potential downside of 3.21%. Given Peloton’s stronger consensus rating and higher possible upside, equities analysts clearly believe Peloton is more favorable than Emerson Electric.

Institutional & Insider Ownership

21.5% of Peloton shares are owned by institutional investors. Comparatively, 70.6% of Emerson Electric shares are owned by institutional investors. 0.1% of Emerson Electric shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Peloton and Emerson Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peloton N/A N/A N/A
Emerson Electric 12.55% 26.32% 10.72%

Valuation & Earnings

This table compares Peloton and Emerson Electric’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peloton $915.00 million 9.67 -$195.60 million N/A N/A
Emerson Electric $18.37 billion 2.52 $2.31 billion $3.69 20.59

Emerson Electric has higher revenue and earnings than Peloton.

Summary

Emerson Electric beats Peloton on 7 of the 11 factors compared between the two stocks.

Peloton Company Profile

Peloton Interactive, Inc. provides interactive fitness products in North America. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. It has approximately 1.4 million members. 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.

Emerson Electric Company Profile

Emerson Electric Co., a technology and engineering company, provides various solutions to industrial, commercial, and consumer markets worldwide. The company's Automation Solutions segment offers products and integrated solutions, including measurement and analytical instrumentation; valves, actuators, and regulators; industrial solutions; and process control systems and solutions. It serves the oil and gas, refining, chemicals and power generation, pharmaceuticals, food and beverage, automotive, pulp and paper, metals and mining, and municipal water supplies markets. The company's Climate Technologies segment offers residential and commercial heating and air conditioning products, such as residential and variable speed scroll compressors; system protector and flow control devices; standard, programmable, and Wi-Fi thermostats; monitoring equipment and electronic controls for gas and electric heating systems; gas valves for furnaces and water heaters; ignition systems for furnaces; sensors and thermistors for home appliances; and temperature sensors and controls. It also provides commercial and industrial refrigeration products that include reciprocating, scroll, and screw compressors; precision flow controls; system diagnostics and controls; and environmental control systems for use in medical, food processing, and cold storage applications. In addition, this segment offers air conditioning, refrigeration, and lighting control technologies, as well as facility design and product management, site commissioning, facility monitoring, and energy modeling services; and temperature management and monitoring products for the foodservice markets. Its Tools & Home Products segment offers professional and homeowner tools, and appliance solutions. The company was formerly known as The Emerson Electric Manufacturing Company and changed its name to Emerson Electric Co. in 2000. Emerson Electric Co. was founded in 1890 and is headquartered in St. Louis, Missouri.

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