GoPro Vs. Fitbit: What's The Better Investing Case?

• Shares of GoPro Inc GPRO have lost around 65 percent from a year ago while shares of Fitbit Inc FIT are higher by around 25 percent since its IPO.
• Rob Cihra of Sterne Agee CRT commented in a note that GoPro faces a "rather weak" fourth quarter while Fitbit "looks very strong."
• Cihra added that GoPro is set up for a "re-accelerated" revenue growth in 2016 while Fitbit's stock already assumes "big ongoing upside."

Shares of GoPro flirted with the $100 per share mark nearly a year ago, but established new 52-week lows of $28.90 last week as investor concerns over the company's growth profile remain ongoing. On the other hand, shares of Fitbit are higher by more than 25 percent since its IPO debut as the wearable technology segment has gained momentum and appreciation from investors.

The question is: which of the two stocks are worth buying?

In a report published Sunday, Rob Cihra of Sterne Agee CRT may have shed some light on the question by reaffirming both names at Neutral each with a $45 price target.

GoPro: Weak End To 2015, Strong 2016 Ahead

According to Cihra, GoPro's revenue growth is expected to slow to just plus-4 percent year-over-year in the fourth quarter as the company did not refresh its HERO action camera while its Session camera has "so far disappointed." Nevertheless, the analyst suggested that investors "already recognize this dynamic" and the company is setting itself up for a busy 2016 as its installed base will be "ripe for upgrades" with a HERO5, and introduce a quad-copter.

Cihra added that GoPro's management is positioning the company for longer-term growth and its productions will ultimately prove to be "the one camera that does not get eaten by smartphones."

Fitbit: Investors Already Expecting Large Upside

Cihra is projecting Fitbit to grow its revenue by 139 percent year-over-year in the third quarter and 67 percent year-over-year in the fourth quarter. These estimates are above the Street's estimates, but are still "beatable." However, the analyst suggested that investors are already expecting large upside to estimates and may be pricing as much into the stock.

Cihra added that he is "optimistic" on the consumer wearable market and the company is "well positioned" with a first-mover advantage. However, the analyst's concern remains that the stock looks priced as if it has already "won" the wearables market which is "only just getting going."

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