Contrasting Woolworths (OTCMKTS:WLWHY) and ON (NYSE:ONON)

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

Institutional & Insider Ownership

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

Valuation & 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	6.97	$245.87 million	$0.93	42.71
Woolworths	$4.42 billion	0.71	$134.61 million	N/A	N/A

ON has higher earnings, but lower revenue than Woolworths.

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices 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 presently has a consensus price target of $55.05, suggesting a potential upside of 38.61%. Given ON’s higher probable upside, research analysts clearly believe ON is more favorable than Woolworths.

Risk and Volatility

ON has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, Woolworths has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Summary

ON beats Woolworths on 10 of the 12 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.