Head to Head Comparison: Mattel (NASDAQ:MAT) & Interactive Strength (NASDAQ:TRNR)

Mattel (NASDAQ:MAT) and Interactive Strength (NASDAQ:TRNR) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Mattel and Interactive Strength’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mattel	9.04%	20.02%	6.62%
Interactive Strength	-159.24%	-469.40%	-52.97%

Institutional and Insider Ownership

97.2% of Mattel shares are held by institutional investors. Comparatively, 0.6% of Interactive Strength shares are held by institutional investors. 1.9% of Mattel shares are held by company insiders. Comparatively, 0.1% of Interactive Strength shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Mattel and Interactive Strength, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mattel	3	4	6	1	2.36
Interactive Strength	1	0	0	0	1.00

Mattel presently has a consensus target price of $18.09, suggesting a potential upside of 17.86%. Interactive Strength has a consensus target price of $157.50, suggesting a potential upside of 12,809.84%. Given Interactive Strength’s higher probable upside, analysts clearly believe Interactive Strength is more favorable than Mattel.

Earnings & Valuation

This table compares Mattel and Interactive Strength”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mattel	$5.35 billion	0.82	$397.58 million	$1.71	8.98
Interactive Strength	$11.53 million	0.17	-$23.97 million	($306.87)	-0.00

Mattel has higher revenue and earnings than Interactive Strength. Interactive Strength is trading at a lower price-to-earnings ratio than Mattel, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Mattel has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Interactive Strength has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Summary

Mattel beats Interactive Strength on 13 of the 14 factors compared between the two stocks.

About Mattel

Mattel, Inc., a toy and family entertainment company, designs, manufactures, and markets toys and consumer products in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as books, content, gaming, and lifestyle products for children under the Barbie, American Girl, Disney Princess and Disney Frozen, Monster High, and Polly Pocket brands; die-cast vehicles, tracks, playsets, and accessories for kids, adults, and collectors under the Hot Wheels, Hot Wheels Monster Trucks, Hot Wheels Mario Kart, Matchbox, and Cars brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other consumer products under the Fisher-Price, Little People and Imaginext, and Thomas & Friends, and Power wheels brands. The company also provides action figures, building sets, games, and other products under the Masters of the Universe, MEGA, UNO, Jurassic World, Minecraft, WWE, Lightyear, and Star Wars; and licensor partner brands, including Disney Pixar, Microsoft, NBCUniversal, and WWE. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including omnichannel retailers, discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.

About Interactive Strength

Interactive Strength Inc., doing business as FORME, operates digital fitness platform that provides connected fitness hardware products and related accessories in the United States. The company offers the Forme Studio, a fitness mirror with touchscreen display; and the Forme Studio Lift, a fitness mirror and cable-based digital resistance. It also provides video on-demand classes, and personal training and expert health coaching services. The company sells its products through retail stores, as well as online. Interactive Strength Inc. was incorporated in 2017 and is headquartered in Austin, Texas.