Analyzing ON (NYSE:ONON) and Levi Strauss & Co. (NYSE:LEVI)

ON (NYSE:ONON) and Levi Strauss & Co. (NYSE:LEVI) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Valuation & Earnings

This table compares ON and Levi Strauss & Co.”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	4.87	$245.87 million	$1.47	18.89
Levi Strauss & Co.	$6.28 billion	1.25	$578.10 million	$1.62	12.62

Levi Strauss & Co. has higher revenue and earnings than ON. Levi Strauss & Co. is trading at a lower price-to-earnings ratio than ON, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for ON and Levi Strauss & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ON	1	5	18	1	2.76
Levi Strauss & Co.	0	4	12	0	2.75

ON currently has a consensus price target of $48.57, indicating a potential upside of 74.92%. Levi Strauss & Co. has a consensus price target of $27.43, indicating a potential upside of 34.16%. Given ON’s stronger consensus rating and higher possible upside, research analysts clearly believe ON is more favorable than Levi Strauss & Co..

Profitability

This table compares ON and Levi Strauss & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ON	12.09%	22.92%	13.33%
Levi Strauss & Co.	9.66%	25.79%	8.61%

Insider and Institutional Ownership

36.4% of ON shares are owned by institutional investors. Comparatively, 69.1% of Levi Strauss & Co. shares are owned by institutional investors. 68.6% of ON shares are owned by insiders. Comparatively, 1.1% of Levi Strauss & Co. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

ON has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500. Comparatively, Levi Strauss & Co. has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Summary

ON beats Levi Strauss & Co. on 10 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 Levi Strauss & Co.

Levi Strauss & Co. engages in the design, marketing, and sale of apparel products. The company offers jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories. It operates through the following geographical segments: Americas, Europe, and Asia. The company was founded by Levi Strauss in 1853 and is headquartered in San Francisco, CA.