Financial Contrast: SPORTS DIRECT I/ADR (OTCMKTS:SDISY) vs. Peloton Interactive (NASDAQ:PTON)

SPORTS DIRECT I/ADR (OTCMKTS:SDISY) and Peloton Interactive (NASDAQ:PTON) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Risk and Volatility

SPORTS DIRECT I/ADR has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares SPORTS DIRECT I/ADR and Peloton Interactive’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SPORTS DIRECT I/ADR $4.83 billion 0.32 $146.08 million N/A N/A
Peloton Interactive $1.83 billion 17.33 -$71.60 million ($0.32) -331.50

SPORTS DIRECT I/ADR has higher revenue and earnings than Peloton Interactive.

Analyst Recommendations

This is a breakdown of current recommendations for SPORTS DIRECT I/ADR and Peloton Interactive, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SPORTS DIRECT I/ADR 0 0 0 0 N/A
Peloton Interactive 2 4 23 0 2.72

Peloton Interactive has a consensus price target of $140.39, suggesting a potential upside of 32.34%. Given Peloton Interactive’s higher probable upside, analysts plainly believe Peloton Interactive is more favorable than SPORTS DIRECT I/ADR.

Institutional & Insider Ownership

68.8% of Peloton Interactive shares are held by institutional investors. 16.5% of Peloton Interactive shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares SPORTS DIRECT I/ADR and Peloton Interactive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SPORTS DIRECT I/ADR N/A N/A N/A
Peloton Interactive 5.78% 11.53% 5.66%

Summary

Peloton Interactive beats SPORTS DIRECT I/ADR on 9 of the 11 factors compared between the two stocks.

About SPORTS DIRECT I/ADR

Sports Direct International plc, together with its subsidiaries, retails sports and leisure clothing, footwear, equipment, and apparel. It operates through five segments: UK Sports Retail, European Retail, Rest of World Retail, Premium Lifestyle, and Wholesale & Licensing. The company is also involved in the wholesale distribution and sale of sports and leisure clothing, footwear, equipment, and apparel under company-owned or licensed brands; and licensing activities. It offers its products under its own brands, which include Slazenger, Everlast, Lonsdale, Karrimor, Antigua, Campri, Carlton, Donnay, Gelert, LA Gear, Lillywhites, Muddyfox, Nevica, No Fear, Silver Fox, Sondico, Title, USA PRO, Crafted, Fabric, Firetrap, Full Circle, Golddigga, Hot Tuna, Kangol, Rock & Rags, SoulCal, Soviet, and Voodoo Dolls; and third party brands. The company offers a range of sporting apparel, footwear, and equipment through SPORTSDIRECT.com and USC fascias. It operates 494 sports retail stores in the United Kingdom and Northern Ireland; 221 sports retail stores in Europe; 30 stores in Malaysia; 49 stores in the United States; and 34 Premium Lifestyle stores. Sports Direct International plc was founded in 1982 and is headquartered in London, the United Kingdom.

About Peloton Interactive

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. 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. As of December 09, 2020, it had approximately 3.6 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.

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