Critical Contrast: Warby Parker (NYSE:WRBY) vs. Nestle (OTCMKTS:NSRGY)

Nestle (OTCMKTS:NSRGY) and Warby Parker (NYSE:WRBY) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nestle and Warby Parker, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nestle	1	3	1	0	2.00
Warby Parker	0	6	11	0	2.65

Nestle currently has a consensus price target of $91.00, indicating a potential downside of 7.41%. Warby Parker has a consensus price target of $27.38, indicating a potential upside of 4.78%. Given Warby Parker’s stronger consensus rating and higher possible upside, analysts plainly believe Warby Parker is more favorable than Nestle.

Earnings & Valuation

This table compares Nestle and Warby Parker”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nestle	$103.78 billion	2.44	$12.36 billion	N/A	N/A
Warby Parker	$771.32 million	3.58	-$20.39 million	$0.01	2,613.60

Nestle has higher revenue and earnings than Warby Parker.

Profitability

This table compares Nestle and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nestle	N/A	N/A	N/A
Warby Parker	0.08%	1.96%	1.01%

Volatility and Risk

Nestle has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Warby Parker has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500.

Insider & Institutional Ownership

0.6% of Nestle shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 18.2% of Warby Parker shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Warby Parker beats Nestle on 10 of the 12 factors compared between the two stocks.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.