Analyzing SharkNinja (NYSE:SN) and Garmin (NYSE:GRMN)

Garmin (NYSE:GRMN) and SharkNinja (NYSE:SN) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Garmin and SharkNinja”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garmin	$7.25 billion	8.27	$1.66 billion	$9.70	32.03
SharkNinja	$6.40 billion	4.06	$701.37 million	$4.90	37.60

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

Profitability

This table compares Garmin and SharkNinja’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garmin	24.47%	20.95%	17.06%
SharkNinja	10.06%	27.79%	14.19%

Volatility and Risk

Garmin has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, SharkNinja has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

81.6% of Garmin shares are held by institutional investors. Comparatively, 34.8% of SharkNinja shares are held by institutional investors. 14.8% of Garmin shares are held by insiders. Comparatively, 40.8% of SharkNinja shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Garmin and SharkNinja, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garmin	0	3	2	2	2.86
SharkNinja	0	1	12	0	2.92

Garmin presently has a consensus target price of $310.17, indicating a potential downside of 0.16%. SharkNinja has a consensus target price of $188.59, indicating a potential upside of 2.35%. Given SharkNinja’s stronger consensus rating and higher possible upside, analysts clearly believe SharkNinja is more favorable than Garmin.

Summary

Garmin beats SharkNinja on 8 of the 15 factors compared between the two stocks.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

About SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.