ON (NYSE:ONON – Get Free Report) and Lakeland Industries (NASDAQ:LAKE – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
36.4% of ON shares are owned by institutional investors. Comparatively, 71.7% of Lakeland Industries shares are owned by institutional investors. 68.6% of ON shares are owned by insiders. Comparatively, 3.4% of Lakeland Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares ON and Lakeland Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ON | 12.09% | 22.92% | 13.33% |
| Lakeland Industries | -13.99% | -11.35% | -6.94% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ON | $3.64 billion | 4.76 | $245.87 million | $1.47 | 18.47 |
| Lakeland Industries | $192.65 million | 0.54 | -$25.31 million | ($2.71) | -3.84 |
ON has higher revenue and earnings than Lakeland Industries. Lakeland Industries is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for ON and Lakeland Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ON | 2 | 5 | 18 | 2 | 2.74 |
| Lakeland Industries | 1 | 1 | 3 | 0 | 2.40 |
ON currently has a consensus price target of $44.75, suggesting a potential upside of 64.81%. Lakeland Industries has a consensus price target of $15.00, suggesting a potential upside of 44.09%. Given ON’s stronger consensus rating and higher probable upside, research analysts clearly believe ON is more favorable than Lakeland Industries.
Risk and Volatility
ON has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, Lakeland Industries has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Summary
ON beats Lakeland Industries on 14 of the 15 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 Lakeland Industries
Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. It offers firefighting and heat protective apparel to protect against fire; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks. The company provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts. In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries. The company sells its products to a network of safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives. It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments. Lakeland Industries, Inc. was incorporated in 1982 and is headquartered in Huntsville, Alabama.
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