Shimano (OTCMKTS:SMNNY – Get Free Report) and Amer Sports (NYSE:AS – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Profitability
This table compares Shimano and Amer Sports’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shimano | 7.12% | 2.86% | 2.64% |
| Amer Sports | 6.51% | 9.74% | 5.80% |
Volatility and Risk
Shimano has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Amer Sports has a beta of 2.8, meaning that its share price is 180% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shimano | $3.12 billion | 2.80 | $227.74 million | $0.24 | 42.08 |
| Amer Sports | $6.57 billion | 2.58 | $427.40 million | $0.75 | 40.84 |
Amer Sports has higher revenue and earnings than Shimano. Amer Sports is trading at a lower price-to-earnings ratio than Shimano, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.0% of Shimano shares are held by institutional investors. Comparatively, 40.3% of Amer Sports shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Shimano and Amer Sports, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shimano | 0 | 0 | 0 | 0 | 0.00 |
| Amer Sports | 0 | 2 | 15 | 2 | 3.00 |
Amer Sports has a consensus price target of $47.12, suggesting a potential upside of 53.86%. Given Amer Sports’ stronger consensus rating and higher probable upside, analysts clearly believe Amer Sports is more favorable than Shimano.
Summary
Amer Sports beats Shimano on 11 of the 14 factors compared between the two stocks.
About Shimano
Shimano Inc. develops, produces, and distributes bicycle components, fishing tackles, and rowing equipment. It has operations in Japan, Asia, Europe, North America, Latin America, and Oceania. Shimano Inc. was founded in 1921 and is headquartered in Sakai, Japan.
About Amer Sports
Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, american football, basketball, golf, and various other professional and recreational sports. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse. It sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, ENVE, Wilson, Louisville Slugger, DeMarini, EvoShield, and ATEC brands. The company distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.
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