Manchester United (NYSE: MANU) and Steiner Leisure (NASDAQ:STNR) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Institutional & Insider Ownership

73.1% of Manchester United shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Manchester United and Steiner Leisure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manchester United 0 0 3 0 3.00
Steiner Leisure 0 0 0 0 N/A

Manchester United presently has a consensus target price of $20.47, suggesting a potential upside of 23.67%. Given Manchester United’s higher possible upside, research analysts plainly believe Manchester United is more favorable than Steiner Leisure.

Earnings & Valuation

This table compares Manchester United and Steiner Leisure’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Manchester United $702.28 million 0.94 $218.52 million $0.10 165.52
Steiner Leisure N/A N/A N/A N/A N/A

Manchester United has higher revenue and earnings than Steiner Leisure.

Profitability

This table compares Manchester United and Steiner Leisure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manchester United 2.51% 4.36% 1.40%
Steiner Leisure -7.69% -40.01% -12.91%

Dividends

Manchester United pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. Steiner Leisure does not pay a dividend. Manchester United pays out 180.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Manchester United beats Steiner Leisure on 8 of the 9 factors compared between the two stocks.

About Manchester United

Manchester United plc is engaged in the operation of a professional football club together with related and ancillary activities. Its football operations primarily comprise various activities, such as its first team, reserve team, youth academy, global scouting networks and other operations, such as its sport science, medical and fitness operations at the Aon Training Complex. It operates in three sectors, including Commercial, Broadcasting and Matchday. Within the Commercial revenue sector, the Company monetizes its global brand through approximately three revenue streams, such as sponsorship; retail, merchandising, apparel and product licensing, and mobile and content. It monetizes the value of its global brand and community of followers through marketing and sponsorship relationships with international and regional companies around the world. It markets and sells sports apparel, training and leisure wear and other clothing featuring the Manchester United brand on a global basis.

About Steiner Leisure

Steiner Leisure Limited is a United States-based global provider of spa services, medi-spa services. The Company manufactures and distributes skin, body and hair care products. It is an accredited educator teaching students the skills necessary to be a spa professional, including massage, skincare and spa management. The Company’s product brands include Bliss, Elemis, Jou, La Therapie, Mandara and Steiner skincare, wellness and haircare products. Its brands are distributed through the Company operated day spas, resorts and spas-at-sea. The Company’s maritime and resort spa divisions operate in over approximately 200 venues on land and at sea. Its education group operates schools at around 17 campuses located in Arizona, Colorado, Connecticut, Florida, Maryland, Nevada, Pennsylvania, Utah and Virginia. Its Ideal Image is spa with over approximately 70 facilities in the United States, which provides laser hair removal for men and women.

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