Analyzing Planet Fitness (PLNT) & Speedway Motorsports (TRK)
Planet Fitness (NYSE: PLNT) and Speedway Motorsports (NYSE:TRK) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitabiliy and dividends.
Insider & Institutional Ownership
94.7% of Planet Fitness shares are held by institutional investors. Comparatively, 22.3% of Speedway Motorsports shares are held by institutional investors. 19.9% of Planet Fitness shares are held by insiders. Comparatively, 72.0% of Speedway Motorsports shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for Planet Fitness and Speedway Motorsports, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Planet Fitness presently has a consensus price target of $24.55, suggesting a potential upside of 11.62%. Given Planet Fitness’ stronger consensus rating and higher probable upside, analysts plainly believe Planet Fitness is more favorable than Speedway Motorsports.
Earnings and Valuation
This table compares Planet Fitness and Speedway Motorsports’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Planet Fitness||$386.00 million||4.13||$153.88 million||$0.51||43.12|
|Speedway Motorsports||$509.31 million||1.47||$126.64 million||$0.89||20.52|
Planet Fitness has higher revenue, but lower earnings than Speedway Motorsports. Speedway Motorsports is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Planet Fitness has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Speedway Motorsports has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500.
Speedway Motorsports pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. Planet Fitness does not pay a dividend. Speedway Motorsports pays out 67.4% of its earnings in the form of a dividend.
This table compares Planet Fitness and Speedway Motorsports’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Planet Fitness beats Speedway Motorsports on 10 of the 16 factors compared between the two stocks.
About Planet Fitness
Planet Fitness, Inc. is a franchisor and operator of fitness centers in the United States. The Company operates through three segments: Franchise; Corporate-owned stores, and Equipment. The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, the Dominican Republic and Canada. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores. As of December 31, 2016, it had approximately 8.9 million members and 1,313 stores in 48 states, the District of Columbia, Puerto Rico, Canada and the Dominican Republic. Of its 1,313 stores, 1,255 were franchised and 58 are corporate-owned, as of December 31, 2016.
About Speedway Motorsports
Speedway Motorsports, Inc. (SMI), through its operating subsidiaries, is a promoter, marketer and sponsor of motorsports activities in the United States. The Company’s operations consist of promoting, marketing and sponsoring motorsports racing events, merchandising and other related activities conducted at its various speedway facilities located in the United States. Its segments include motorsports event related and all other. Its motorsports event related segment consists of National Association for Stock Car Auto Racing, Inc. (NASCAR) broadcasting and event motorsports merchandising activities. Its all other operations consist of SMIP subsidiary non-event motorsports and non-motorsports merchandising, US Legend Cars International subsidiary (Legend Cars) non-event merchandising and sanctioning body activities, Oil-Chem micro-lubricant activities, Texas Motor Speedway (TMS) natural gas mineral rights lease and related revenues, and office rentals at certain Company speedways.
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