Critical Analysis: BARK (NYSE:BARK) & Beachbody (NYSE:BODI)

Beachbody (NYSE:BODI) and BARK (NYSE:BARK) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares Beachbody and BARK”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beachbody	$418.80 million	0.06	-$71.64 million	($9.22)	-0.39
BARK	$484.18 million	0.28	-$32.88 million	($0.19)	-4.27

BARK has higher revenue and earnings than Beachbody. BARK is trading at a lower price-to-earnings ratio than Beachbody, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.5% of Beachbody shares are owned by institutional investors. Comparatively, 28.8% of BARK shares are owned by institutional investors. 41.8% of Beachbody shares are owned by company insiders. Comparatively, 14.8% of BARK shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Beachbody and BARK, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beachbody	0	2	2	0	2.50
BARK	0	1	2	0	2.67

Beachbody currently has a consensus price target of $10.67, indicating a potential upside of 195.89%. BARK has a consensus price target of $2.63, indicating a potential upside of 223.28%. Given BARK’s stronger consensus rating and higher probable upside, analysts clearly believe BARK is more favorable than Beachbody.

Risk and Volatility

Beachbody has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, BARK has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500.

Profitability

This table compares Beachbody and BARK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beachbody	-17.02%	-93.85%	-20.87%
BARK	-6.79%	-14.70%	-5.97%

Summary

BARK beats Beachbody on 10 of the 13 factors compared between the two stocks.

About Beachbody

The Beachbody Company, Inc. operates as a subscription health and wellness company that provides fitness, nutrition, and stress-reducing programs in the United States and internationally. The company operates Beachbody on Demand, a digital subscription platform that provides access to a library of live and on-demand fitness and nutrition content; and Beachbody on Demand Interactive (BODi) for live fitness and nutrition programs. It also offers nutritional products, such as Shakeology, a nutrition shake; Beachbody Performance supplements comprising pre-workout energize, hydrate, post-workout recover, and protein supplement recharge products; BEACHBAR, a low-sugar snack bar; supplements under the LADDER brand; connected fitness products; and BODi Bike Studio, a package subscription to BODi with a bike and accessories. The Beachbody Company, Inc. was founded in 1998 and is headquartered in El Segundo, California.

About BARK

BARK Inc., a dog-centric company, provides products, services, and content for dogs. It operates in two segments, Direct to Consumer and Commerce. The company serves dogs through monthly subscription services. It is also involved in the design of playstyle-specific toys, satisfying treats, personal meal plans with supplements, and dog-first experiences designed to foster health and happiness of dogs everywhere. In addition, the company offers monthly themed box of toys and treats under the BarkBox and Super Chewer names; personalized meal plans under the BARK Food name; health and wellness products under the BARK Bright name; and dog beds, bowls, collars, harnesses, and leashes under the BARK Home brand. Further, the company sells BARK Home products through BarkShop.com. Additionally, it offers custom collections through online marketplaces, and brick and mortar retailers. The company was formerly known as The Original BARK Company and changed its name to BARK, Inc. in November 2021. BARK Inc. was incorporated in 2011 and is headquartered in New York, New York.