Critical Survey: Interactive Strength (NASDAQ:TRNR) and Marriott Vacations Worldwide (NYSE:VAC)

Marriott Vacations Worldwide (NYSE:VAC) and Interactive Strength (NASDAQ:TRNR) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Earnings and Valuation

This table compares Marriott Vacations Worldwide and Interactive Strength”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$4.97 billion	0.38	$218.00 million	$4.46	12.28
Interactive Strength	$5.38 million	0.41	-$34.93 million	($22.64)	-0.02

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

Insider and Institutional Ownership

89.5% of Marriott Vacations Worldwide shares are held by institutional investors. Comparatively, 0.6% of Interactive Strength shares are held by institutional investors. 1.6% of Marriott Vacations Worldwide shares are held by insiders. Comparatively, 0.1% of Interactive Strength shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Marriott Vacations Worldwide and Interactive Strength’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	3.44%	11.44%	2.83%
Interactive Strength	-202.03%	-152.27%	-32.49%

Analyst Ratings

This is a breakdown of current ratings for Marriott Vacations Worldwide and Interactive Strength, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	5	1	4	0	1.90
Interactive Strength	1	0	0	2	3.00

Marriott Vacations Worldwide presently has a consensus price target of $61.13, indicating a potential upside of 11.59%. Interactive Strength has a consensus price target of $2.25, indicating a potential upside of 436.99%. Given Interactive Strength’s stronger consensus rating and higher probable upside, analysts clearly believe Interactive Strength is more favorable than Marriott Vacations Worldwide.

Volatility & Risk

Marriott Vacations Worldwide has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Interactive Strength has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Summary

Marriott Vacations Worldwide beats Interactive Strength on 11 of the 15 factors compared between the two stocks.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club, and Marriott Vacation Club Pulse brands. It develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through Interval International, and Aqua-Aston business brands. Further, it provides financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. The company was founded in 1984 and is headquartered in Orlando, Florida.

About Interactive Strength

Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. The company offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. It also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. Interactive Strength Inc. was incorporated in 2017 and is headquartered in Austin, Texas.