Alta vs Planet Fitness Which Is a Better Investment?

Alta and Planet Fitness are two popular gym chains that have been attracting investors' attention in the stock market. While both companies operate in the fitness industry, they have distinct business models and growth strategies. Alta focuses on offering a premium experience with high-end amenities, personalized services, and exclusive memberships. On the other hand, Planet Fitness targets a more budget-conscious market with its affordable pricing and no-frills approach. Investors are closely watching how each company navigates the competitive landscape and capitalizes on the growing demand for fitness services.

Alta or Planet Fitness?

When comparing Alta and Planet Fitness, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Alta and Planet Fitness.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Alta has a dividend yield of -%, while Planet Fitness has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Planet Fitness reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.39%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Alta P/E ratio at 2.28 and Planet Fitness's P/E ratio at 51.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alta P/B ratio is 0.16 while Planet Fitness's P/B ratio is -30.66.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alta has seen a 5-year revenue growth of 10.40%, while Planet Fitness's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alta's ROE at 7.34% and Planet Fitness's ROE at -80.47%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł2.14 for Alta and $95.11 for Planet Fitness. Over the past year, Alta's prices ranged from zł1.43 to zł3.59, with a yearly change of 151.05%. Planet Fitness's prices fluctuated between $54.35 and $98.59, with a yearly change of 81.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.