Planet Fitness (NYSE:PLNT – Get Free Report) and Krispy Kreme (NASDAQ:DNUT – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Earnings and Valuation
This table compares Planet Fitness and Krispy Kreme”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Planet Fitness | $1.41 billion | 2.87 | $219.10 million | $2.95 | 18.13 |
| Krispy Kreme | $1.52 billion | 0.37 | -$515.77 million | ($0.56) | -5.83 |
Planet Fitness has higher earnings, but lower revenue than Krispy Kreme. Krispy Kreme is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.5% of Planet Fitness shares are held by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are held by institutional investors. 0.9% of Planet Fitness shares are held by insiders. Comparatively, 1.6% of Krispy Kreme shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Planet Fitness has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Planet Fitness and Krispy Kreme, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Planet Fitness | 1 | 9 | 11 | 1 | 2.55 |
| Krispy Kreme | 2 | 1 | 1 | 0 | 1.75 |
Planet Fitness presently has a consensus target price of $69.55, indicating a potential upside of 30.08%. Krispy Kreme has a consensus target price of $4.33, indicating a potential upside of 32.72%. Given Krispy Kreme’s higher possible upside, analysts clearly believe Krispy Kreme is more favorable than Planet Fitness.
Profitability
This table compares Planet Fitness and Krispy Kreme’s 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% |
| Krispy Kreme | -6.16% | -1.17% | -0.31% |
Summary
Planet Fitness beats Krispy Kreme on 10 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 Krispy Kreme
Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.
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