Like so many other industries, gyms across the nation were shut down due to COVID-19. Companies offering at-home fitness solutions — like Peloton (NASDAQ:PTON) — should continue to thrive in this environment thanks to featuring products that enable both fitness and social distancing.
When thinking longer term, however, Planet Fitness (NYSE:PLNT) — a traditional brick-and-mortar gym chain — is the best way to invest in the space. Here’s why.
Better investment in a post-COVID world
Planet Fitness offers shareholders better value. The company trades hands at a trailing price to sales multiple of 8.9. Planet Fitness sales will shrink this year before rebounding in 2021. To compare, Peloton exchanges hands for a trailing price to sales multiple of 16.4. This is even after the stock pulled back 15% off of all-time highs this month. Planet Fitness’s forward earnings multiple of 34 also matches up favorably to