HSN (NASDAQ: HSNI) and Roundy's (NYSE:RNDY) are both cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares HSN and Roundy's’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
HSN $3.57 billion 0.61 $118.70 million $2.15 19.23
Roundy's N/A N/A N/A ($0.06) -60.00

HSN has higher revenue and earnings than Roundy's. Roundy's is trading at a lower price-to-earnings ratio than HSN, indicating that it is currently the more affordable of the two stocks.

Dividends

HSN pays an annual dividend of $1.40 per share and has a dividend yield of 3.4%. Roundy's does not pay a dividend. HSN pays out 65.1% of its earnings in the form of a dividend.

Risk and Volatility

HSN has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Roundy's has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

52.8% of HSN shares are owned by institutional investors. 1.5% of HSN shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares HSN and Roundy's’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HSN 3.29% 56.55% 9.44%
Roundy's -0.89% N/A -3.14%

Analyst Recommendations

This is a summary of recent ratings and price targets for HSN and Roundy's, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HSN 0 4 2 0 2.33
Roundy's 0 0 0 0 N/A

HSN currently has a consensus price target of $42.67, indicating a potential upside of 3.18%. Given HSN’s higher possible upside, analysts plainly believe HSN is more favorable than Roundy's.

Summary

HSN beats Roundy's on 11 of the 12 factors compared between the two stocks.

HSN Company Profile

HSN, Inc. is an interactive multi-channel retailer. The Company markets and sells a range of third party and merchandise directly to consumers through various platforms, including television home shopping programing broadcast on the HSN television networks and other direct-response television marketing; catalogs, consisting of the Cornerstone portfolio of print catalogs, which includes, Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements; Websites, which consist primarily of HSN.com, joymangano.com and the five branded Websites operated by Cornerstone; mobile devices; retail and outlet stores, and wholesale distribution of certain products to other retailers. It operates through two segments: HSN and Cornerstone. HSN offerings include jewelry, fashion, beauty and health (including beauty and fitness), and home and other (including home, electronics, culinary and other). Merchandise offered by Cornerstone consists of home furnishings, and apparel and accessories.

Roundy's Company Profile

Roundy’s, Inc. is a Midwest supermarket chain. The Company offers a range of products, stocking around 45,000 different items. Its stores sell nationally advertised brands, as well as products under the Roundy’s own-brand labels. Its products are classified into non-perishable, perishable and non-food. Non-perishable food categories include grocery, frozen and dairy products. Perishable categories include produce, meat, seafood, deli, bakery and floral. Non-food includes general merchandise, health and beauty care, pharmacy and alcohol. It classifies products into primary categories, including grocery, frozen and dairy; produce; meat and seafood; bakery; deli, cheese and prepared foods; floral; general merchandise; alcohol; pharmacy; and health and beauty care. Its retail operations consists of around 148 grocery stores, with 119 stores in Wisconsin operating under the Pick ‘n Save, Copps and Metro Market banners and 29 stores in Illinois operating under the Mariano’s banner.

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