Comparing Mattel (NASDAQ:MAT) & Peloton Interactive (NASDAQ:PTON)

Mattel (NASDAQ:MAT – Get Free Report) and Peloton Interactive (NASDAQ:PTON – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Valuation & Earnings

This table compares Mattel and Peloton Interactive”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mattel $5.35 billion 0.68 $397.58 million $1.36 9.29
Peloton Interactive $2.45 billion 0.90 $63.20 million $0.12 41.88

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

Profitability

This table compares Mattel and Peloton Interactive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mattel 7.79% 16.20% 5.37%
Peloton Interactive 2.58% -23.92% 3.00%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mattel and Peloton Interactive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mattel 3 5 5 1 2.29
Peloton Interactive 2 6 5 0 2.23

Mattel currently has a consensus price target of $17.80, indicating a potential upside of 40.88%. Peloton Interactive has a consensus price target of $7.95, indicating a potential upside of 58.21%. Given Peloton Interactive’s higher possible upside, analysts plainly believe Peloton Interactive is more favorable than Mattel.

Insider & Institutional Ownership

97.2% of Mattel shares are owned by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are owned by institutional investors. 1.9% of Mattel shares are owned by company insiders. Comparatively, 1.3% of Peloton Interactive shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Mattel has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500.

Summary

Mattel beats Peloton Interactive on 10 of the 14 factors compared between the two stocks.

About Mattel

(Get Free Report)

Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.

About Peloton Interactive

(Get Free Report)

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. 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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