Critical Contrast: Sonder (NASDAQ:SOND) and Planet Fitness (NYSE:PLNT)

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

Earnings & Valuation

This table compares Planet Fitness and Sonder”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Planet Fitness	$1.25 billion	6.99	$172.04 million	$2.25	46.09
Sonder	$621.27 million	0.03	-$224.09 million	($15.18)	-0.09

Planet Fitness has higher revenue and earnings than Sonder. Sonder 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 Sonder’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Planet Fitness	15.11%	-110.18%	7.69%
Sonder	-28.31%	N/A	-14.94%

Institutional and Insider Ownership

95.5% of Planet Fitness shares are held by institutional investors. Comparatively, 45.9% of Sonder shares are held by institutional investors. 5.9% of Planet Fitness shares are held by insiders. Comparatively, 8.8% of Sonder shares are held 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Planet Fitness and Sonder, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Planet Fitness	0	2	11	1	2.93
Sonder	0	0	0	0	0.00

Planet Fitness presently has a consensus target price of $111.54, suggesting a potential upside of 7.55%. Given Planet Fitness’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Planet Fitness is more favorable than Sonder.

Volatility and Risk

Planet Fitness has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Sonder has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.

Summary

Planet Fitness beats Sonder on 12 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 Sonder

Sonder Holdings Inc. engages in the hospitality business. It operates and manages properties comprising 1-, 2-, and 3+ bedroom; and studio apartments, as well as 1-bedroom hotel rooms for leisure travelers and families, digital nomads, and business travelers in North America, Europe, and the Middle East. The company is headquartered in San Francisco, California.