Analyzing Peloton Interactive (NASDAQ:PTON) and Fitell (NASDAQ:FTEL)

Fitell (NASDAQ:FTEL) and Peloton Interactive (NASDAQ:PTON) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Fitell and Peloton Interactive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fitell	N/A	N/A	N/A
Peloton Interactive	-31.94%	N/A	-31.63%

Valuation & Earnings

This table compares Fitell and Peloton Interactive’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fitell	$4.80 million	18.53	-$1.59 million	N/A	N/A
Peloton Interactive	$2.80 billion	0.41	-$1.26 billion	($2.45)	-1.29

Fitell has higher earnings, but lower revenue than Peloton Interactive.

Insider & Institutional Ownership

0.1% of Fitell shares are owned by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are owned by institutional investors. 3.3% of Peloton Interactive shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Fitell and Peloton Interactive, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fitell	0	0	0	0	N/A
Peloton Interactive	3	12	5	0	2.10

Peloton Interactive has a consensus target price of $7.50, suggesting a potential upside of 137.18%. Given Peloton Interactive’s higher probable upside, analysts clearly believe Peloton Interactive is more favorable than Fitell.

Summary

Peloton Interactive beats Fitell on 5 of the 9 factors compared between the two stocks.

About Fitell

Fitell Corporation, together with its subsidiaries, operates as an online retailer of gym and fitness equipment for personal training studios and commercial gyms chains in Australia and Southeast Asia. The company sells fitness equipment, including home gym and commercial strength-training equipment; and cardio equipment, such as rowing machines, exercise bikes, treadmills, and other related products under the Muscle Motion, Rapid Motion, and FleetX brand names. It is also involved in the boutique fitness clubs licensing business. The company sells its products through its online website and offline business, such as phone, e-mail, and showroom sales. Fitell Corporation was founded in 2007 and is headquartered in Taren Point, Australia. Fitell Corporation is a subsidiary of SKMA Capital and Investment Ltd.

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.