Analyzing Koss (NASDAQ:KOSS) and Garmin (NYSE:GRMN)

Koss (NASDAQ:KOSS) and Garmin (NYSE:GRMN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Insider and Institutional Ownership

6.2% of Koss shares are owned by institutional investors. Comparatively, 81.6% of Garmin shares are owned by institutional investors. 44.3% of Koss shares are owned by insiders. Comparatively, 14.8% of Garmin shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Koss has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Garmin has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koss	$12.62 million	2.81	-$880,000.00	($0.11)	-34.09
Garmin	$7.25 billion	8.27	$1.66 billion	$9.70	32.03

Garmin has higher revenue and earnings than Koss. Koss is trading at a lower price-to-earnings ratio than Garmin, 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 Koss and Garmin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koss	1	0	0	0	1.00
Garmin	0	3	2	2	2.86

Garmin has a consensus price target of $310.17, suggesting a potential downside of 0.16%. Given Garmin’s stronger consensus rating and higher possible upside, analysts plainly believe Garmin is more favorable than Koss.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koss	-8.57%	-3.62%	-2.98%
Garmin	24.47%	20.95%	17.06%

Summary

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

About Koss

Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. It sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company markets through domestic retail outlets and numerous retailers. It exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.

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.