Head-To-Head Analysis: Peloton (NASDAQ:PTON) versus General Electric (NASDAQ:GE)

General Electric (NYSE:GE) and Peloton (NASDAQ:PTON) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Electric $121.62 billion 0.80 -$22.35 billion $0.65 17.08
Peloton $915.00 million 10.00 -$195.60 million N/A N/A

Peloton has lower revenue, but higher earnings than General Electric.

Institutional and Insider Ownership

60.2% of General Electric shares are held by institutional investors. Comparatively, 21.5% of Peloton shares are held by institutional investors. 1.1% of General Electric shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for General Electric and Peloton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Electric 2 7 6 0 2.27
Peloton 0 3 19 0 2.86

General Electric currently has a consensus price target of $10.46, indicating a potential downside of 5.78%. Peloton has a consensus price target of $32.56, indicating a potential downside of 0.23%. Given Peloton’s stronger consensus rating and higher possible upside, analysts clearly believe Peloton is more favorable than General Electric.

Profitability

This table compares General Electric and Peloton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Electric -4.39% 11.69% 1.87%
Peloton N/A N/A N/A

Summary

Peloton beats General Electric on 6 of the 11 factors compared between the two stocks.

General Electric Company Profile

General Electric Company operates as a high-tech industrial company worldwide. It operates through Power, Renewable Energy, Aviation, Oil & Gas, Healthcare, Transportation, Lighting, and Capital segments. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, generators, and high voltage equipment; and power generation services. The Renewable Energy segment provides wind turbine platforms, and hardware and software; offshore wind turbines; solutions, products, and services to hydropower industry; and blades for onshore and offshore wind turbines. The Oil & Gas segment offers oilfield and oilfield equipment, turbomachinery and process solutions, and digital solutions. The Aviation segment provides jet engines and turboprops for commercial airframes; maintenance, component repair, and overhaul services, as well as replacement parts; and additive machines and materials, and engineering services. The Healthcare segment provides healthcare technologies in medical imaging, digital solutions, patient monitoring, and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance enhancement solutions. The Transportation segment provides freight and passenger locomotives, and rail and support advisory services; parts, integrated software solutions, and data analytics; software-enabled solutions; mining equipment and services; and marine diesel engines, and stationary power diesel engines and motors for drilling rigs, as well as overhaul, repair and upgrade, and wreck repair services. The Lighting segment offers light emitting diode products; and energy efficiency and productivity solutions. The Capital segment leases and finances aircraft, regional jets, turboprops, freighters, engines, helicopters, as well as offers financing and materials; financial and underwriting solutions; and insurance services. The company was founded in 1892 and is based in Boston, Massachusetts.

Peloton Company Profile

Peloton Interactive, Inc. provides interactive fitness products in North America. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. It has approximately 1.4 million members. 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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