Financial Contrast: Planet Fitness (NYSE:PLNT) vs. ONE Group Hospitality (NASDAQ:STKS)

Planet Fitness (NYSE:PLNT) and ONE Group Hospitality (NASDAQ:STKS) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Valuation and Earnings

This table compares Planet Fitness and ONE Group Hospitality”s gross revenue, earnings per share (EPS) 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.

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%

Risk and Volatility

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 summary of recent recommendations 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

Planet Fitness currently has a consensus price target of $69.34, suggesting a potential upside of 44.55%. ONE Group Hospitality has a consensus price target of $4.00, suggesting a potential upside of 166.67%. Given ONE Group Hospitality’s higher probable upside, analysts plainly believe ONE Group Hospitality is more favorable than Planet Fitness.

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 insiders. Comparatively, 25.7% of ONE Group Hospitality shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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.