Critical Analysis: Bloomin’ Brands (NASDAQ:BLMN) and Planet Fitness (NYSE:PLNT)

Planet Fitness (NYSE:PLNTGet Free Report) and Bloomin’ Brands (NASDAQ:BLMNGet Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

95.5% of Planet Fitness shares are held by institutional investors. 0.9% of Planet Fitness shares are held by insiders. Comparatively, 1.2% of Bloomin’ Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Planet Fitness and Bloomin’ Brands”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Planet Fitness $1.32 billion 2.97 $219.10 million $2.95 17.64
Bloomin’ Brands $3.96 billion 0.19 $8.24 million $0.31 28.24

Planet Fitness has higher earnings, but lower revenue than Bloomin’ Brands. Planet Fitness is trading at a lower price-to-earnings ratio than Bloomin’ Brands, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Planet Fitness has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Bloomin’ Brands has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Planet Fitness and Bloomin’ Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Fitness 16.88% -59.46% 8.60%
Bloomin’ Brands 0.70% 28.95% 3.47%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Planet Fitness and Bloomin’ Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Fitness 1 9 11 1 2.55
Bloomin’ Brands 2 8 0 1 2.00

Planet Fitness presently has a consensus price target of $70.24, suggesting a potential upside of 34.97%. Bloomin’ Brands has a consensus price target of $9.75, suggesting a potential upside of 11.36%. Given Planet Fitness’ stronger consensus rating and higher probable upside, equities analysts clearly believe Planet Fitness is more favorable than Bloomin’ Brands.

Summary

Planet Fitness beats Bloomin’ Brands on 9 of the 14 factors compared between the two stocks.

About Planet Fitness

(Get Free Report)

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 Bloomin’ Brands

(Get Free Report)

Bloomin’ Brands, Inc. engages in the acquisition, operation, design, and development of restaurant concepts. It operates through the U.S. and International geographical segments. The U.S. segment operates in the USA and Puerto Rico. The International segment operates in Brazil, South Korea, Hong Kong, and China. Its brands include Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. The company was founded by Chris Thomas Sullivan, Robert Danker Basham and John Timothy Gannon in March 1988 and is headquartered in Tampa, FL.

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