Critical Contrast: BowFlex (NYSE:BFX) & Li Ning (OTCMKTS:LNNGF)

BowFlex (NYSE:BFX) and Li Ning (OTCMKTS:LNNGF) are both consumer cyclical companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares BowFlex and Li Ning’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BowFlex	-32.13%	-162.93%	-48.40%
Li Ning	N/A	N/A	N/A

Earnings & Valuation

This table compares BowFlex and Li Ning’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BowFlex	$226.39 million	0.03	-$105.40 million	($2.10)	-0.09
Li Ning	N/A	N/A	N/A	($0.56)	-4.49

Li Ning has lower revenue, but higher earnings than BowFlex. Li Ning is trading at a lower price-to-earnings ratio than BowFlex, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

26.0% of BowFlex shares are owned by institutional investors. Comparatively, 20.9% of Li Ning shares are owned by institutional investors. 3.9% of BowFlex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BowFlex and Li Ning, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BowFlex	0	0	1	0	3.00
Li Ning	0	0	0	0	N/A

BowFlex presently has a consensus price target of $2.00, suggesting a potential upside of 925.64%. Given BowFlex’s higher probable upside, research analysts clearly believe BowFlex is more favorable than Li Ning.

Summary

BowFlex beats Li Ning on 6 of the 10 factors compared between the two stocks.

About BowFlex

BowFlex Inc., a fitness solutions company, designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer use in the United States, Canada, Europe, the Middle East, Africa, and internationally. The company operates through two segments, Direct and Retail. It offers cardio products, exercise bikes, treadmills, ellipticals, home gyms, dumbbells, kettlebells, and barbells primarily under the Nautilus, Bowflex, and Schwinn brands, as well as digital fitness platform under the JRNY brand. In addition, it engages in licensing its brands and intellectual properties. The company offers its products directly to consumers through television advertising, social media, websites, and catalogs; and through a network of retail companies consisting of sporting goods stores, online-only retailers, electronics stores, furniture stores, and large-format and warehouse stores, as well as specialty retailers and independent bike dealers. The company was formerly known as Nautilus, Inc. and changed its name to BowFlex Inc. in November 2023. BowFlex Inc. was founded in 1986 and is headquartered in Vancouver, Washington. On March 4, 2024, BowFlex Inc., along with its affiliate, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.

About Li Ning

Li Ning Company Limited, a sports brand company, engages in the research and development, design, manufacture, marketing, distribution, and retail of sporting goods in the People's Republic of China. The company offers sporting goods, including professional and leisure footwear, apparel, equipment, and accessories under the LI-NING brand. It also develops, manufactures, markets, distributes, and/or sells outdoor sports products under the AIGLE brand; table tennis products under the Double Happiness brand name; fashionable fitness products for dance and yoga under the Danskin brand; and badminton products under the Kason brand name. The company also provides brand licensing, administrative, and property management services. It operates conventional stores, flagship stores, China LI-NING stores, LI-NING 1990 stores, factory outlets, and multi-brand stores under the LI-NING brand. The company was founded in 1990 and is headquartered in Beijing, the People's Republic of China.