Head to Head Analysis: Garmin (NYSE:GRMN) & Skyworth Group (OTCMKTS:SWDHF)

Garmin (NYSE:GRMN) and Skyworth Group (OTCMKTS:SWDHF) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Dividends

Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.4%. Skyworth Group pays an annual dividend of $0.15 per share and has a dividend yield of 25.6%. Garmin pays out 43.3% of its earnings in the form of a dividend. Skyworth Group pays out 27.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Garmin has increased its dividend for 8 consecutive years. Skyworth Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Garmin and Skyworth Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garmin	$7.25 billion	7.85	$1.66 billion	$9.70	30.40
Skyworth Group	N/A	N/A	N/A	$0.54	1.08

Garmin has higher revenue and earnings than Skyworth Group. Skyworth Group is trading at a lower price-to-earnings ratio than Garmin, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

81.6% of Garmin shares are held by institutional investors. Comparatively, 23.1% of Skyworth Group shares are held by institutional investors. 14.8% of Garmin shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Garmin and Skyworth Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garmin	24.47%	20.95%	17.06%
Skyworth Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Garmin and Skyworth Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	0	3	2	2	2.86
Skyworth Group	0	0	0	0	0.00

Garmin presently has a consensus target price of $310.17, suggesting a potential upside of 5.19%. Given Garmin’s stronger consensus rating and higher probable upside, analysts clearly believe Garmin is more favorable than Skyworth Group.

Summary

Garmin beats Skyworth Group on 13 of the 15 factors compared between the two stocks.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

About Skyworth Group

Skyworth Group Limited, an investment holding company, researches and develops, manufactures, sells, trades, and exports consumer electronic products. It operates through Smart Household Appliances Business, Smart Systems Technology Business, and New Energy Business segments. The company offers smart TV systems; home access systems, such as digital set-top boxes; smart white appliances, including air conditioners, refrigerators, washing machines, kitchen appliances, tablet computer, and other products; LCD modules; automotive electronic systems; photovoltaic products; lighting products; security systems; and other electronic products, as well as internet value-added services. It is also involved in the property development and holding; trading of consumer electronic products; and sale and installation of photovoltaic power station for residential and commercial uses, as well as financing and treasury management activities. In addition, the company engages in the maintenance and repair of home appliances; construction development business; financial leasing; and macro logistics services, as well as operates industrial parks. It has operations in the People's Republic of China, rest of Asia, Europe, the Middle East, the Americas, Oceania, and Africa. The company was formerly known as Skyworth Digital Holdings Limited and changed its name to Skyworth Group Limited in June 2019. Skyworth Group Limited was founded in 1988 and is headquartered in Quarry Bay, Hong Kong.