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Historically, physics education primarily consisted of lectures in which students have a largely passive role. Proponents of educational reform have rallied around active learning to increase engagement and retention in STEM fields, particularly advocating peer interactions to build a foundation of deep understanding. However, little is known about how students' prior preparation for introductory courses impacts their mastery of course material when instructors incorporate active learning. In the present study, we examine learning outcomes in two sections of an introductory mechanics course at an institution with a wide range of students' prior mathematics preparation as assessed by quantitative SAT scores. For each of three years, one section was taught using peer instruction in which much of the class time was spent in small-group discussions between students. The other section was taught by the same instructor using interactive lectures in which discussions primarily took place between volunteers from the class and the instructor. We find that students enrolled in the peer instruction sections earned lower grades in the course than did students in the interactive sections. We also find students in the peer instruction sections with lower quantitative SAT scores showed lower gains in understanding foundational concepts as assessed by the Force Concept Inventory and were less likely to earn an A in the course than comparable students in the interactive sections. While further research is needed to confirm these results, this study suggests that peer instruction might not be the optimal pedagogy for heterogeneous populations.