Critical Comparison: Woolworths (OTCMKTS:WLWHY) versus ON (NYSE:ONON)

ON (NYSE:ONON) and Woolworths (OTCMKTS:WLWHY) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Insider and Institutional Ownership

36.4% of ON shares are owned by institutional investors. 68.6% of ON shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ON and Woolworths’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	7.92%	15.72%	8.99%
Woolworths	N/A	N/A	N/A

Valuation and Earnings

This table compares ON and Woolworths”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ON	$3.64 billion	7.01	$245.87 million	$0.93	42.96
Woolworths	$4.42 billion	0.71	$134.61 million	N/A	N/A

ON has higher earnings, but lower revenue than Woolworths.

Analyst Recommendations

This is a summary of recent recommendations for ON and Woolworths, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	1	4	15	2	2.82
Woolworths	0	1	0	1	3.00

ON currently has a consensus price target of $55.05, indicating a potential upside of 37.80%. Given ON’s higher possible upside, research analysts plainly believe ON is more favorable than Woolworths.

Volatility and Risk

ON has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, Woolworths has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Summary

ON beats Woolworths on 11 of the 13 factors compared between the two stocks.

About ON

On Holding AG engages in the development and distribution of sports products such as footwear, apparel, and accessories for high-performance running, outdoor, all-day activities, and tennis. It sells its products worldwide through independent retailers and global distributors, its own online presence, and its own stores. The company was founded by David Allemann, Olivier Bernhard, and Caspar Coppetti in January 2010 and is headquartered in Zurich, Switzerland.

About Woolworths

Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in South Africa, Australia, and New Zealand. It operates through seven segments: Woolworths Fashion, Beauty and Home; Woolworths Food; Woolworths Financial Services; Woolworths Logistics; Country Road Group; and Treasury. The company provides food, clothing, homeware, beauty, and various lifestyle products. It offers financial products and services, such as store cards, credit cards, personal loans, and other financial products. The company is also involved in the cash and debt management activities. Woolworths Holdings Limited was incorporated in 1929 and is based in Cape Town, South Africa.