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The global health and fitness club market is expected to grow substantially in the next 5-10 years. With that in mind, today I'll analyze and compare Planet Fitness (NYSE:PLNT) and Life Time Group Holdings (LTH) to determine which is currently the better investment.The fitness industry, especially brick-and-mortar gyms, has faced the biggest disruption in its history due to the COVID-19 pandemic. Twenty-two percent of Gyms and fitness studios in the U.S. were permanently closed to prevent the spread of coronavirus, translating into a loss of $29.2 billion in industry revenue, the National Health & Fitness Alliance (NHFA) reports.
As the pandemic fades and the global economy recovers, the fitness industry could present a great investment opportunity. According to Verified Market Research, the global health and fitness club market is expected to reach $136.59 Billion, growing at a CAGR of 7.61% between 2021 and 2028. This growth is projected to be fueled by the higher inclination toward health clubs for fitness.
Keeping that in mind, today, I’m going to analyze and compare two gym stocks, Planet Fitness (PLNT) and Life Time Group Holdings (LTH). Founded in 1992, Planet Fitness, together with its subsidiaries, owns and franchises a chain of low-cost gyms in the U.S. and worldwide. YTD, Planet Fitness stock has gained about 4.8%. Headquartered in Chanhassen, Minnesota, Life Time owns over 150 high-end fitness centers in a resort-like environment in the U.S. and Canada. Life Time has recently become public, presently trading around 8.7% above its IPO price.
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