Planet Fitness vs Waste Management Which Is More Promising?

Planet Fitness and Waste Management are two companies that operate in different sectors of the market, but both have shown growth potential in recent years. Planet Fitness is a popular gym chain that focuses on providing affordable fitness options for its customers, while Waste Management is a leader in waste disposal and recycling services. Both companies have seen steady growth in their stock prices, and investors are looking for opportunities to capitalise on these trends. In this comparison, we will explore the strengths and weaknesses of each stock to help investors make informed decisions about their portfolios.

Planet Fitness or Waste Management?

When comparing Planet Fitness and Waste Management, 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 Planet Fitness and Waste Management.

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. Planet Fitness has a dividend yield of -%, while Waste Management has a dividend yield of 1.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Planet Fitness reports a 5-year dividend growth of 0.00% year and a payout ratio of 1.39%. On the other hand, Waste Management reports a 5-year dividend growth of 8.52% year and a payout ratio of 45.06%.

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 Planet Fitness P/E ratio at 50.23 and Waste Management's P/E ratio at 33.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Planet Fitness P/B ratio is -30.14 while Waste Management's P/B ratio is 11.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Planet Fitness has seen a 5-year revenue growth of 0.92%, while Waste Management's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Planet Fitness's ROE at -80.47% and Waste Management's ROE at 35.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $94.62 for Planet Fitness and $223.39 for Waste Management. Over the past year, Planet Fitness's prices ranged from $54.35 to $98.59, with a yearly change of 81.40%. Waste Management's prices fluctuated between $168.73 and $226.50, with a yearly change of 34.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.