Noodles & Company (NASDAQ:NDLS – Get Free Report) and Planet Fitness (NYSE:PLNT – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.
Risk & Volatility
Noodles & Company has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Profitability
This table compares Noodles & Company and Planet Fitness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Noodles & Company | -4.71% | N/A | -3.40% |
| Planet Fitness | 16.06% | -47.24% | 8.41% |
Valuation and Earnings
This table compares Noodles & Company and Planet Fitness”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Noodles & Company | $495.69 million | 0.17 | -$42.57 million | ($4.01) | -3.61 |
| Planet Fitness | $1.32 billion | 3.49 | $219.10 million | $2.95 | 20.73 |
Planet Fitness has higher revenue and earnings than Noodles & Company. Noodles & Company is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Noodles & Company and Planet Fitness, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Noodles & Company | 1 | 1 | 0 | 0 | 1.50 |
| Planet Fitness | 1 | 9 | 11 | 1 | 2.55 |
Planet Fitness has a consensus price target of $71.87, suggesting a potential upside of 17.50%. Given Planet Fitness’ stronger consensus rating and higher probable upside, analysts plainly believe Planet Fitness is more favorable than Noodles & Company.
Insider & Institutional Ownership
65.7% of Noodles & Company shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 2.8% of Noodles & Company shares are owned by company insiders. Comparatively, 0.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Planet Fitness beats Noodles & Company on 12 of the 15 factors compared between the two stocks.
About Noodles & Company
Noodles & Company is a fast-casual restaurant company headquartered in Broomfield, Colorado. Founded in 1995, the company operates restaurants serving dishes inspired by noodle and pasta traditions from around the world, with a menu designed to offer customizable meals in a casual setting. Its menu includes noodle-based entrées such as Wisconsin Mac & Cheese, Japanese Pan Noodles, Pad Thai and spaghetti, along with salads, soups, desserts and beverages. The company also offers options intended to accommodate various dietary preferences, including vegetarian and gluten-sensitive choices, where available.
About Planet Fitness
Planet Fitness, Inc. is a fitness club franchisor and operator known for its low-cost membership model and “Judgement Free Zone” approach. Its clubs offer cardio and strength-training equipment, along with access to fitness training and other member services. Founded in 1992, the company began franchising its clubs in 2003. Planet Fitness serves members primarily in the United States, as well as in several international markets, including Canada, Mexico and Australia. Planet Fitness is headquartered in Hampton, New Hampshire.
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