ICON vs Planet Fitness Which Outperforms?

ICON and Planet Fitness are two companies in the health and wellness industry with different business models and growth prospects. ICON, a global leader in athletic apparel and footwear, has shown strong financial performance and brand loyalty. Meanwhile, Planet Fitness, a chain of budget-friendly gyms, has experienced rapid growth in membership and revenue. Investors may be torn between the allure of well-established brands like ICON and the fast-paced expansion of Planet Fitness. This comparison will delve into their respective financials, market positioning, and growth potential to determine which stock may be the better investment choice.

ICON or Planet Fitness?

When comparing ICON 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 ICON 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. ICON 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. ICON 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 ICON P/E ratio at 23.05 and Planet Fitness's P/E ratio at 52.94. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ICON P/B ratio is 1.76 while Planet Fitness's P/B ratio is -31.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ICON has seen a 5-year revenue growth of 1.06%, while Planet Fitness's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ICON's ROE at 7.87% and Planet Fitness's ROE at -80.57%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $206.19 for ICON and $98.77 for Planet Fitness. Over the past year, ICON's prices ranged from $183.38 to $347.72, with a yearly change of 89.62%. Planet Fitness's prices fluctuated between $54.35 and $102.88, with a yearly change of 89.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.