Reviewing Latham Group (NASDAQ:SWIM) and QuantaSing Group (NASDAQ:QSG)

QuantaSing Group (NASDAQ:QSG) and Latham Group (NASDAQ:SWIM) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares QuantaSing Group and Latham Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QuantaSing Group	13.13%	47.31%	21.93%
Latham Group	0.92%	1.31%	0.63%

Institutional & Insider Ownership

83.9% of Latham Group shares are held by institutional investors. 3.3% of Latham Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

QuantaSing Group has a beta of -0.98, meaning that its share price is 198% less volatile than the S&P 500. Comparatively, Latham Group has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for QuantaSing Group and Latham Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuantaSing Group	0	1	0	0	2.00
Latham Group	3	2	2	0	1.86

Latham Group has a consensus target price of $7.83, indicating a potential upside of 7.01%. Given Latham Group’s higher possible upside, analysts clearly believe Latham Group is more favorable than QuantaSing Group.

Valuation and Earnings

This table compares QuantaSing Group and Latham Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuantaSing Group	$2.73 billion	0.03	$50.08 million	$0.90	2.06
Latham Group	$576.64 million	1.49	$11.12 million	$0.05	146.40

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

About QuantaSing Group

QuantaSing Group Limited provides online learning services in the People's Republic of China. The company offers online courses, including financial literacy, short-video production, personal well-being, electronic keyboard, and meditation courses. It also offers marketing and enterprise talent management services to enterprise customers. In addition, the company provides online and literacy course to adult learners under various brands, including QiNiu, JiangZhen, and QianChi. QuantaSing Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.

About Latham Group

Latham Group, Inc. designs, manufactures, and markets in-ground residential swimming pools in North America, Australia, and New Zealand. It offers a portfolio of pools and related products, including in-ground swimming pools that include fiber glass and packaged pools; and pool covers and liners under the Latham, Narellan, CoverStar, Radiant, and GLI brand names. The company was formerly known as Latham Topco, Inc. and changed its name to Latham Group, Inc. in March 2021. Latham Group, Inc. was founded in 1956 and is headquartered in Latham, New York.