Garmin vs Planet Fitness

Garmin and Planet Fitness are two well-known companies in the fitness and technology industries, each offering unique products and services to consumers. Garmin, a leading provider of GPS technology and wearable fitness devices, has experienced steady growth in recent years. On the other hand, Planet Fitness, a popular gym chain known for its affordable memberships and judgment-free atmosphere, has seen rapid expansion and increasing profitability. Both companies have attracted investors seeking to capitalize on the booming fitness and tech markets.

Garmin or Planet Fitness?

When comparing Garmin 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 Garmin 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. Garmin has a dividend yield of 1.77%, while Planet Fitness has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Garmin reports a 5-year dividend growth of 6.82% year and a payout ratio of 40.96%. On the other hand, Planet Fitness reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.65%.

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 Garmin P/E ratio at 23.29 and Planet Fitness's P/E ratio at 45.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Garmin P/B ratio is 4.57 while Planet Fitness's P/B ratio is -22.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Garmin has seen a 5-year revenue growth of 0.54%, while Planet Fitness's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Garmin's ROE at 19.93% and Planet Fitness's ROE at -91.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $166.36 for Garmin and $81.99 for Planet Fitness. Over the past year, Garmin's prices ranged from $99.61 to $184.42, with a yearly change of 85.14%. Planet Fitness's prices fluctuated between $52.38 and $85.08, with a yearly change of 62.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.