Critical Analysis: Peloton Interactive (NASDAQ:PTON) & TruGolf (NASDAQ:TRUG)

TruGolf (NASDAQ:TRUGGet Free Report) and Peloton Interactive (NASDAQ:PTONGet Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

3.2% of TruGolf shares are held by institutional investors. Comparatively, 77.0% of Peloton Interactive shares are held by institutional investors. 37.2% of TruGolf shares are held by company insiders. Comparatively, 3.3% of Peloton Interactive shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

TruGolf has a beta of -0.73, indicating that its stock price is 173% less volatile than the S&P 500. Comparatively, Peloton Interactive has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TruGolf and Peloton Interactive, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TruGolf 0 0 0 0 N/A
Peloton Interactive 3 14 4 0 2.05

Peloton Interactive has a consensus price target of $5.14, indicating a potential upside of 30.02%. Given Peloton Interactive’s higher probable upside, analysts clearly believe Peloton Interactive is more favorable than TruGolf.

Profitability

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

Net Margins Return on Equity Return on Assets
TruGolf N/A N/A -18.40%
Peloton Interactive -28.28% N/A -29.30%

Earnings and Valuation

This table compares TruGolf and Peloton Interactive’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TruGolf $20.35 million 0.73 -$400,000.00 N/A N/A
Peloton Interactive $2.70 billion 0.54 -$1.26 billion ($2.11) -1.87

TruGolf has higher earnings, but lower revenue than Peloton Interactive.

About TruGolf

(Get Free Report)

TruGolf Holdings, Inc., through its subsidiary, engages in the development and sale of indoor golf simulator hardware under the TruGolf Nevada brand for residential and commercial markets in the United States. It also provides E6 Connect software for use on other companies' hardware. The company was founded in 1982 and is headquartered in Centerville, Utah.

About Peloton Interactive

(Get Free Report)

Peloton Interactive, Inc. operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names. 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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