Planet Fitness vs Lithia Motors

This page compares Planet Fitness, Inc. and Lithia Motors Inc., examining their business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates, the strategies they pursue, and the environments in which they compete, without promoting any particular outcome. Educational content, not financial advice.

This page compares Planet Fitness, Inc. and Lithia Motors Inc., examining their business models, financial performance, and market context in a neutral, accessible way. It outlines how each company op...

Comparison Snapshot

Key Financial Metrics

PLNT

Metric

LAD

$8.08B

Market Cap

$7.92B

31.03%

Potential Profit

17.71%

Buy

Analyst Rating

Buy

Investment Analysis

Planet Fitness

PLNT

Pros

Planet Fitness delivered strong Q3 2025 earnings, exceeding analyst expectations for both revenue and EPS, which has boosted investor confidence.
The company has raised its full-year outlook, reflecting continued operational strength and effective cost management in its franchise and corporate segments.
Analyst consensus is a strong buy, with a forecast for significant upside over the next year based on current performance and growth prospects.

Considerations

Planet Fitness has a negative return on equity, indicating persistent challenges in generating shareholder returns from its asset base.
The stock has a high price-to-earnings ratio, which may suggest it is currently trading at a premium relative to its earnings.
Planet Fitness does not pay a dividend, limiting income potential for investors seeking regular returns.

Lithia Motors

LAD

Pros

Lithia Motors maintains a stable market capitalisation and has shown minimal change in its share price over the past year, indicating resilience in volatile conditions.
The company operates across a broad network of automotive dealerships, providing diversified exposure to new and used vehicle sales and related services.
Lithia Motors has demonstrated consistent revenue generation and operational efficiency, supported by its integrated business model.

Considerations

Lithia Motors is exposed to cyclical risks in the automotive sector, which can impact sales and profitability during economic downturns.
The company's performance is sensitive to interest rate changes, affecting consumer financing and demand for vehicles.
Growth may be constrained by increasing competition in the automotive retail sector and evolving consumer preferences towards electric vehicles.

About The Companies

Planet Fitness (PLNT)

Planet Fitness, Inc. (PLNT) operates one of the largest budget gym chains in the United States, offering low-cost memberships focused on casual exercisers rather than hardcore gym-goers. Its asset-light, franchise-heavy model provides recurring revenue from membership fees and franchise royalties, while corporate stores contribute directly to revenue and cash flow. Investors should note the company’s emphasis on scale, value pricing and brand awareness, which can support steady membership growth but also invite intense competition. Growth drivers include continued U.S. market penetration, inbound international expansion, and ancillary services such as personal training and retail. Key risks are sensitivity to consumer spending, competitive pressure from boutique and low-cost rivals, concentration in the U.S. market, and potential membership churn during economic stress. With a market capitalisation around $8.1bn, Planet Fitness may suit investors seeking exposure to consumer discretionary leisure trends, but it’s important to weigh growth prospects against operational and macro risks—this is educational information, not personalised advice.

Lithia Motors (LAD)

Lithia Motors Inc. is a global automotive retailer engaged in selling new and used vehicles, alongside a suite of related products and services. The company operates a vast network of physical locations and e-commerce platforms across the United States, the United Kingdom, and Canada. Its business is split into two main segments: Vehicle Operations, which covers the sale of cars, parts, and providing maintenance services, and Financing Operations, which offers financing solutions to customers. This integrated model aims to cover the entire vehicle ownership lifecycle, from purchase to servicing. As a retailer of consumer discretionary goods, its performance can often be influenced by broader economic health, consumer confidence, and interest rates. Potential investors should note that the value of shares can go down as well as up, and past performance is not a guide to future returns.

Which Baskets Do They Appear In?

Active Lifestyle Portfolio

Tap into the powerful consumer shift toward personal health and fitness with this carefully selected group of companies. Our team of analysts has chosen brands that are leading the wellness economy as it becomes an essential part of modern life.

Published: June 18, 2025

Explore Basket

Body & Fitness

Invest in the companies powering the global wellness movement. This collection features carefully selected market leaders in athletic apparel, fitness equipment, gym chains, and wellness technology, chosen by our investment professionals for their growth potential.

Published: June 17, 2025

Explore Basket

Which Baskets Do They Appear In?

Active Lifestyle Portfolio

Tap into the powerful consumer shift toward personal health and fitness with this carefully selected group of companies. Our team of analysts has chosen brands that are leading the wellness economy as it becomes an essential part of modern life.

Published: June 18, 2025

Explore Basket

Body & Fitness

Invest in the companies powering the global wellness movement. This collection features carefully selected market leaders in athletic apparel, fitness equipment, gym chains, and wellness technology, chosen by our investment professionals for their growth potential.

Published: June 17, 2025

Explore Basket

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Comparison Snapshot