Interactive fitness player PELON (NASDAQ: PTON)The Covide-19 epidemic was a huge success because people who were known for their associated bikes, treadmills, and fitness chose to work from home instead of visiting gymnasiums and backpacks. However, the mega-cap computing is titan Apple (NASDAQ: AAPL) He is looking to play a major role in the fitness field with digital services such as Apple and Apple Fitness +. So which stock is the best bet for investors? With Peloton’s low rating duplicates (stocks to 5.9x follow-up, around 7x with Apple) and a strong long-term growth rate, we think Peloton is up much longer. However, there is more to compare. Let’s go back to the relative assessment of the two companies by taking a closer look at the overall historical revenue growth as well as skill development and financial risk. Our dashboard Peloton Interactive vs Apple: Which stock is best to play on at home fitness trends? It has more details on this. Parts of the analysis are summarized below.
1. Peloton’s revenue growth has become stronger
Peloton, which has a net worth of $ 4 billion in the last 12 months, is a baby compared to Apple’s $ 347 billion in the last 12 months. However, Peloton’s growth has been strong, with sales up 54% year-on-year (Q4 FY’21) to nearly $ 937 million over the past quarter. supply chain. Apple, on the other hand, grew by 36 percent due to demand for computer products, digital services and wearables. Peloton’s average historical development is also high and consistent. For example, Peloton has doubled its revenue annually over the past three years, while Apple has grown by 6% in the last three years.
looking forward, Peloton revenues A.D. By 2022, it is projected to grow by 30% yoy to $ 5.2 billion. However, Apple Revenue Demand for 5G iPhone computers and the demand for computer products such as Mac and iPad have increased by 33 percent to $ 366 billion following the outbreak of the CVD-19 epidemic, which could accelerate growth in the 21st fiscal year. However, we expect Peloton’s average growth rate to last longer than Apple’s.
2. Apple has thicker margins, but it has more limits to improve Peloton.
Peloton stood at about -5% compared to the previous fiscal year, although the overall margin was relatively strong at 36 percent. Apple, on the other hand, has one of the highest margins in the consumer electronics industry due to its core products and strong pricing capabilities, with 29% of the workforce for 12 consecutive months and a net profit of 41%. Now both companies have made some progress in recent years by improving their margins. Apple In 2018, profit margins improved from 26.7% to 28.8% in 2021, and Peloton increased its margins from -11% to -4.6%.
Looking ahead, Peloton may see some marginal pressure in the near future due to high market costs and low price gains on some products. Apple, too, could see some pressure due to the ongoing semiconductor shortage. That is, we think that Peloton’s margins have increased in the long run as the price of Peloton’s work margins continues to rise.
The net of all
Apple’s history is simple. Customers purchase an iDevice, integrate it with the Apple device and services ecosystem and return to the company for more, turning on the cash machine. In 2018, the P / P multiplier rose from 2.5 x to 7x, and while Apple shares have recently become more expensive, the company’s business model has promised sustainable growth and steady returns to investors. Peloton is looking at a similar business model as it sells expensive but desirable fitness equipment and pays its customers a monthly subscription service. However, with Peloton’s low-income, with Apple (5.9x versus 7x), we think it’s a better growth option considering the strong recent revenue growth and improvement margins. In addition, Peloton’s stock has fallen by -42% since mid-January, which may provide a good starting point for investors, up about 15% compared to Apple’s stock.
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