GoPro (NASDAQ: GPRO) and Panasonic (OTCMKTS:PCRFY) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

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This table compares GoPro and Panasonic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GoPro -15.50% -40.56% -17.17%
Panasonic 2.22% 9.48% 2.80%

Analyst Recommendations

This is a breakdown of recent ratings for GoPro and Panasonic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GoPro 3 9 0 0 1.75
Panasonic 0 0 1 0 3.00

GoPro currently has a consensus price target of $7.55, indicating a potential upside of 57.95%. Given GoPro’s higher possible upside, research analysts clearly believe GoPro is more favorable than Panasonic.

Institutional & Insider Ownership

26.0% of GoPro shares are owned by institutional investors. Comparatively, 0.2% of Panasonic shares are owned by institutional investors. 28.6% of GoPro shares are owned by insiders. Comparatively, 1.0% of Panasonic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

GoPro has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Panasonic has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Valuation & Earnings

This table compares GoPro and Panasonic’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GoPro $1.18 billion 0.59 -$182.87 million ($1.31) -3.65
Panasonic $67.93 billion 0.52 $1.39 billion $0.67 22.61

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

Dividends

Panasonic pays an annual dividend of $0.07 per share and has a dividend yield of 0.5%. GoPro does not pay a dividend. Panasonic pays out 10.4% of its earnings in the form of a dividend.

Summary

Panasonic beats GoPro on 11 of the 16 factors compared between the two stocks.

GoPro Company Profile

GoPro, Inc. (GoPro) produces cameras and mountable and wearable accessories. The Company’s product offerings include HERO5, which is a line of cloud-connected cameras featuring image stabilization, telemetry, cloud connectivity and voice control; GoPro Plus, which is a cloud-based storage solution that enables subscribers to access, edit and share content; Quik, which is a mobile editing application that creates edits on a smartphone; Capture, which is a mobile application that allows users to preview and play back shots, control their GoPro cameras and share content on the fly using their smartphones; Karma, which is its compact and foldable drone and versatile stabilization solution that includes the Karma controller, and camera stabilizer, and it all fits in a custom backpack, and Karma Grip, which is a handheld, body-mountable camera stabilizer. It also offers a full ecosystem of mountable, wearable and voice activated accessories.

Panasonic Company Profile

Panasonic Corporation is engaged in the development of diverse electronics technologies and solutions. The Company operates through five segments: Appliances, Eco Solutions, AVC Networks, Automotive & Industrial Systems, and Other. The Appliances segment is engaged in the development, manufacture and sale of consumer electronics, air-conditioners, cold chain and devices. The Eco Solutions segment is engaged in development, manufacture and sale of lighting fixtures, lamps, wiring devices, solar photovoltaic systems, ventilation and air-conditioning equipment, air purifiers and nursing-care-related products. The AVC Networks segment is engaged in development, manufacture and sale of products, such as aircraft in-flight entertainment systems, personal computers, and social infrastructure systems equipment. The Automotive & Industrial Systems segment is engaged in the development, manufacture and sale of automotive products, energy products, industrial devices and factory solutions.

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