Peloton Interactive (NASDAQ:PTON) and YETI (NYSE:YETI) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Risk and Volatility
Peloton Interactive has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, YETI has a beta of 2.64, meaning that its stock price is 164% more volatile than the S&P 500.
Profitability
This table compares Peloton Interactive and YETI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peloton Interactive | 5.78% | 11.53% | 5.66% |
| YETI | 15.27% | 71.70% | 25.55% |
Valuation and Earnings
This table compares Peloton Interactive and YETI’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peloton Interactive | $1.83 billion | 17.17 | -$71.60 million | ($0.32) | -328.34 |
| YETI | $1.09 billion | 7.21 | $155.80 million | $1.78 | 50.69 |
YETI has lower revenue, but higher earnings than Peloton Interactive. Peloton Interactive is trading at a lower price-to-earnings ratio than YETI, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
68.8% of Peloton Interactive shares are held by institutional investors. Comparatively, 94.7% of YETI shares are held by institutional investors. 16.5% of Peloton Interactive shares are held by company insiders. Comparatively, 3.1% of YETI shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Peloton Interactive and YETI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peloton Interactive | 2 | 4 | 23 | 0 | 2.72 |
| YETI | 0 | 6 | 13 | 0 | 2.68 |
Peloton Interactive presently has a consensus target price of $140.97, indicating a potential upside of 34.17%. YETI has a consensus target price of $89.89, indicating a potential downside of 0.37%. Given Peloton Interactive’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Peloton Interactive is more favorable than YETI.
About Peloton Interactive
Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. As of December 09, 2020, it had approximately 3.6 million members. 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 YETI
YETI Holdings, Inc. designs, markets, retails, and distributes products for the outdoor and recreation market under the YETI brand. The company offers hard and soft coolers, as well as storage, transport, outdoor living, and associated accessories. It also provides drinkware products, such as colsters, lowballs, wine tumblers, stackable pints, tumblers, mugs, bottles, and jugs, as well as accessories comprising bottle straw caps, tumbler handles, jug mounts, and bottle slings under the Rambler brand. In addition, the company offers YETI-branded gear products, such as hats, shirts, bottle openers, and ice substitutes. It sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through Website. The company operates in the United States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. YETI Holdings, Inc. was founded in 2006 and is headquartered in Austin, Texas.