Comparing Online Vacation Center (OTCMKTS:ONVC) and SEA (NYSE:SE)

SEA (NYSE:SE) and Online Vacation Center (OTCMKTS:ONVC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

This table compares SEA and Online Vacation Center’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SEA	5.98%	13.54%	5.59%
Online Vacation Center	1.64%	N/A	N/A

Insider & Institutional Ownership

59.5% of SEA shares are held by institutional investors. 0.2% of SEA shares are held by insiders. Comparatively, 71.3% of Online Vacation Center shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SEA and Online Vacation Center, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEA	1	3	8	1	2.69
Online Vacation Center	0	0	0	0	0.00

SEA presently has a consensus price target of $151.90, suggesting a potential upside of 34.73%. Given SEA’s stronger consensus rating and higher possible upside, research analysts plainly believe SEA is more favorable than Online Vacation Center.

Earnings & Valuation

This table compares SEA and Online Vacation Center”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEA	$27.72 billion	2.48	$1.58 billion	$2.59	43.53
Online Vacation Center	$19.46 million	0.60	$490,000.00	$0.05	33.75

SEA has higher revenue and earnings than Online Vacation Center. Online Vacation Center is trading at a lower price-to-earnings ratio than SEA, indicating that it is currently the more affordable of the two stocks.

Dividends

SEA pays an annual dividend of $1.76 per share and has a dividend yield of 1.6%. Online Vacation Center pays an annual dividend of $0.08 per share and has a dividend yield of 4.7%. SEA pays out 68.0% of its earnings in the form of a dividend. Online Vacation Center pays out 160.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

SEA has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Online Vacation Center has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Summary

SEA beats Online Vacation Center on 14 of the 17 factors compared between the two stocks.

About SEA

Sea Ltd. is an internet and mobile platform company, which engages in the provision of online gaming services. It operates through the following segments: Digital Entertainment, E-Commerce, and Digital Financial Services. The Digital Entertainment segment offers and develops mobile and PC online games. The E-Commerce segment manages a third-party marketplace through the Shopee mobile app and websites that connect buyers and sellers. The Digital Financial Services segment includes a variety of payment services and loans to individuals and businesses through SeaMoney. Sea was founded by Xiao Dong Li, Gang Ye, and Jing Ye Chen on May 8, 2009 and is headquartered in Singapore.

About Online Vacation Center

Online Vacation Center Holdings Corp., through its subsidiaries, provides vacation travel and marketing services in the United States. The company offers vacation services for affluent retiree markets. It also involved in developing and selling river, ocean, and land vacation packages; publishes three travel newsletters under the Top Travel Deals, Spotlight, and TravelFlash brands; selling online of golf training aids; and operates a cruises franchise that focused on travel sales through mobile agents, as well as a website that connects travelers to purchase hotel, resort, and vacation packages. The company was founded in 1972 and is based in Fort Lauderdale, Florida.