Analyzing Noodles & Company (NASDAQ:NDLS) & Planet Fitness (NYSE:PLNT)
by Danessa Lincoln · The Markets DailyNoodles & Company (NASDAQ:NDLS – Get Free Report) and Planet Fitness (NYSE:PLNT – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.
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 | 16.88% | -59.46% | 8.60% |
Analyst Recommendations
This is a breakdown of current ratings 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 target price of $69.55, indicating a potential upside of 20.67%. Given Planet Fitness’ stronger consensus rating and higher possible upside, analysts plainly believe Planet Fitness is more favorable than Noodles & Company.
Risk and Volatility
Noodles & Company has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
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 insiders. Comparatively, 0.9% of Planet Fitness shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
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 | $495.09 million | 0.18 | -$42.57 million | ($4.01) | -3.71 |
| Planet Fitness | $1.32 billion | 3.29 | $219.10 million | $2.95 | 19.54 |
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.
Summary
Planet Fitness beats Noodles & Company on 12 of the 15 factors compared between the two stocks.
About Noodles & Company
Noodles & Co. engages in the business of development and operation of fast-casual restaurants that serve noodle and pasta dishes, soups, salads, and appetizers. The firm also offers pleasant dining, pick-up, and delivery experiences by quickly preparing fresh food with friendly service. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.
About Planet Fitness
Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.