Contrasting H.I.S. (OTCMKTS:HISJF) and OneSpaWorld (NASDAQ:OSW)

OneSpaWorld (NASDAQ:OSW) and H.I.S. (OTCMKTS:HISJF) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

96.0% of OneSpaWorld shares are owned by institutional investors. 3.9% of OneSpaWorld shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares OneSpaWorld and H.I.S.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneSpaWorld	7.90%	16.38%	12.27%
H.I.S.	1.22%	13.69%	2.27%

Volatility and Risk

OneSpaWorld has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, H.I.S. has a beta of -0.26, meaning that its stock price is 126% less volatile than the S&P 500.

Valuation and Earnings

This table compares OneSpaWorld and H.I.S.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneSpaWorld	$936.08 million	2.19	$72.86 million	$0.71	28.35
H.I.S.	$2.50 billion	0.39	$31.62 million	$0.40	32.73

OneSpaWorld has higher earnings, but lower revenue than H.I.S.. OneSpaWorld is trading at a lower price-to-earnings ratio than H.I.S., indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for OneSpaWorld and H.I.S., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneSpaWorld	0	0	6	1	3.14
H.I.S.	0	0	0	0	0.00

OneSpaWorld presently has a consensus price target of $24.20, indicating a potential upside of 20.22%. Given OneSpaWorld’s stronger consensus rating and higher probable upside, equities analysts plainly believe OneSpaWorld is more favorable than H.I.S..

Summary

OneSpaWorld beats H.I.S. on 13 of the 15 factors compared between the two stocks.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.