Peloton Interactive (NASDAQ:PTON – Get Free Report) and Latham Group (NASDAQ:SWIM – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Earnings and Valuation
This table compares Peloton Interactive and Latham Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peloton Interactive | $2.45 billion | 0.95 | $63.20 million | $0.12 | 44.25 |
| Latham Group | $545.91 million | 1.58 | $11.12 million | $0.05 | 146.40 |
Peloton Interactive has higher revenue and earnings than Latham Group. Peloton Interactive is trading at a lower price-to-earnings ratio than Latham Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Peloton Interactive has a beta of 2.56, indicating that its stock price is 156% more volatile than the S&P 500. Comparatively, Latham Group has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Peloton Interactive and Latham Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peloton Interactive | 1 | 7 | 5 | 0 | 2.31 |
| Latham Group | 3 | 3 | 1 | 0 | 1.71 |
Peloton Interactive presently has a consensus target price of $7.60, indicating a potential upside of 43.13%. Latham Group has a consensus target price of $7.83, indicating a potential upside of 7.01%. Given Peloton Interactive’s stronger consensus rating and higher possible upside, analysts clearly believe Peloton Interactive is more favorable than Latham Group.
Profitability
This table compares Peloton Interactive and Latham Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peloton Interactive | 2.58% | -23.92% | 3.00% |
| Latham Group | 0.92% | 1.31% | 0.63% |
Insider and Institutional Ownership
77.0% of Peloton Interactive shares are held by institutional investors. Comparatively, 84.0% of Latham Group shares are held by institutional investors. 1.2% of Peloton Interactive shares are held by company insiders. Comparatively, 3.3% of Latham Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Peloton Interactive beats Latham Group on 9 of the 14 factors compared between the two stocks.
About Peloton Interactive
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.
About Latham Group
Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.
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