Analyzing Interactive Strength (NASDAQ:TRNR) & JAKKS Pacific (NASDAQ:JAKK)

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

Profitability

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

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

Analyst Recommendations

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

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

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

Institutional and Insider Ownership

44.4% of JAKKS Pacific shares are held by institutional investors. Comparatively, 0.6% of Interactive Strength shares are held by institutional investors. 4.2% of JAKKS Pacific shares are held by insiders. Comparatively, 0.1% of Interactive Strength shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares JAKKS Pacific and Interactive Strength”s top-line revenue, earnings per share (EPS) and valuation.

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

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.

Volatility and Risk

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

Summary

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

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.

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.