Sharp (OTCMKTS:SHCAY) and Peloton (NASDAQ:PTON) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Earnings and Valuation

This table compares Sharp and Peloton’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sharp $21.80 billion 0.37 $668.03 million $0.21 18.29
Peloton $915.00 million 9.72 -$195.60 million N/A N/A

Sharp has higher revenue and earnings than Peloton.

Profitability

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

Net Margins Return on Equity Return on Assets
Sharp 2.53% -167.37% -30.50%
Peloton N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Sharp and Peloton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sharp 1 1 1 0 2.00
Peloton 0 3 21 0 2.88

Peloton has a consensus price target of $34.00, suggesting a potential upside of 7.26%. Given Peloton’s stronger consensus rating and higher possible upside, analysts plainly believe Peloton is more favorable than Sharp.

Institutional & Insider Ownership

0.1% of Sharp shares are held by institutional investors. Comparatively, 21.5% of Peloton shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Peloton beats Sharp on 7 of the 10 factors compared between the two stocks.

About Sharp

Sharp Corporation manufactures and distributes electronic communication equipment, electronic equipment, electronic application equipment, and electronic components in Japan, the Americas, Europe, China, and internationally. It operates through four segments: Smart Homes, Smart Business Solutions, Internet of Things (IoT) Electronics Devices, and Advance Display Systems. The Smart Homes segment offers mobile phones, electronic dictionaries, calculators, facsimiles, telephones, network control units, refrigerators, superheated steam ovens, microwave ovens, small cooking appliances, air conditioners, washing machines, vacuum cleaners, air purifiers, electric fans, dehumidifiers, humidifiers, electric heaters, plasma cluster ion generators, beauty appliances, solar cells, and storage batteries. The Smart Business Solutions segment provides POS systems, electronic cash registers, commercial projectors, information displays, digital multi-function printers, options and consumables, software, FA equipment, and ultrasonic sensors. The IoT Electronics Devices segment offers camera modules, camera modules production facilities, sensor modules, proximity sensors, dust sensors, CCD/CMOS sensors, laser diodes, and automotive cameras. The Advance Display Systems segment provides LCD color televisions, Blu-ray disc recorders, IGZO LCD modules, CG-silicon LCD modules, and amorphous silicon LCD modules. The company was formerly known as Hayakawa Electric Industry Co., Ltd. and changed its name to Sharp Corporation in January 1970. Sharp Corporation was founded in 1912 and is headquartered in Sakai, Japan.

About Peloton

Peloton Interactive, Inc. provides interactive fitness products in North America. 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. It has approximately 1.4 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.

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